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HomeMy WebLinkAbout2005 Annual Budget DRAFT Prepared 12(29/04 for 115105 Board Meeting. ANNUAL BUDGET TRUCKEE DONNER PUBLIC UTILITY DISTRICT ~ w 2005 t APPROVED BY THE BOARD OF DIRECTORS TABLE OF CONTENTS Mission Statement and Goals 1 2 Budget Message Part i- Operating, Repair and Maintenance Plan- Electric Portion 4 Electric Operations Introduction 5 Electric Operations Revenue Statement 6 Summary of Electric Revenues and Expenses 7 Electric Expenditure Detail: 8 Board of Directors 11 General Manager 94 Administrative Services 17 Planning Services 19 Support Services 22 Electric Operations 24 Power Supply Part H- Operating, Repair and Maintenance Plan- Water Portion 26 Water Operations Introduction 27 Water Operations Revenue Statement 29 Summary of Water Revenues and Expenses 30 Water Expenditure Detail: 39 Board of Directors 33 General Manager 35 Administrative Services 36 Planning Services 37 Support Services 38 Water Operations 40 Power Supply TABLE OF CONTENTS Continued: Electric and Water Capital Plans 41 Part Ili- Capital Improvement Plan- Electric Portion 43 Part IV- Capital Improvement Plan- Water Portion 46 Part V-Appendices: 49 Appendix 1 Interdepartmental Rent 50 Appendix 11 Budgeted Positions by Department 51 Appendix/it Labor Overhead 52 Appendix IV Transportation Overhead 53 Appendix V Inventory Overhead 54 Appendix VI Administrative Overhead 55 Appendix Vll Construction Overhead 56 Appendix Vlll Electric Debt Schedule 57 Appendix IX Water Debt Schedule 58 Appendix X Vehicle Replacement Schedule 59 MISSION STATEMENT The Board of Directors of the District has engaged in strategic planning sessions for the past four years. An important outcome of that process was agreement on a Mission Statement for the District. The Strategic Plan and Mission Statement recognize that Truckee Donner PUD is actively involved in three distinct business efforts, and suggests that we should consider becoming involved in one additional business effort. Our three current business units are: Water supply and distribution Electric distribution Electric power supply(aggregation) The new business unit suggested for further strategic evaluation is telecommunications. The Mission Statements for the District as a whole and for the current business units are as follows: a. The District mission is to be valued by our customers as a local agency with a long term service record, committed to the well-being of the Truckee community, bringing innovation, competence and trustworthiness in the delivery of water and electric services. b. The water business unit mission is to provide moderately priced, high quality potable water, delivered at the pressure and quantity sufficient to meet the needs of residences and businesses in the Truckee Donner PUD service territory. c. The electric distribution business unit mission is to provide low cost and reliable delivery of electric energy, at voltages sufficient to meet the needs of the residences and businesses in the Truckee Donner PUD service territory. d. The mission of the electric power supply business unit is to be the aggregator of choice for every residence and business located in the Truckee Donner PUD service territory, by contracting for delivery of low cost electric energy and capacity in sufficient quantity to meet the needs of our customers. 1 BUDGET MESSAGE With submission of this document we present to the Board of Directors the budget for 2005 for the Truckee Donner Public Utility District. The complete Budget this year consists of three separate documents, one of which is actually entitled 2005 Budqet. A second document is entitled Five-Year Plan of Capital Expenditures: 2005 Through 2009 and the third document is entitled Detailed Budget Data for 2005. The Five-Year plan of Capital Expenditures and the Detailed Budget Expenditures are the first documents to be prepared, and the 2005 Budqet is a summary presentation of the those documents. The 2005 Budge t consists of five distinct parts. Part 1 is the plan of operations, maintenance and repair for the electric system. Part 2 is the plan of operations, maintenance and repair of the water system. Parts 3 and 4 are the capital budgets for the electric and water systems respectively. Part 5 is a group of appendices that are useful in understanding the first two parts. The first four parts include a listing of planned expenditures and the sources of funds that will support those expenditures. The various narratives describe departmental objectives and provide valuable information regarding the structure of district operations. For budgetary purposes District operations can be viewed as involving two distinct tasks (1) we serve water and electricity to approximately 12,000 customers day by day, and (2) we expand our water and electric systems in response to growth in the community. These two tasks have different funding sources. The day by day provision of water and electric services is funded by monthly water and electric rates, while expansion of the water and electric systems in response to growth is funded by developer contributions in the form of direct payments set forth in development agreements, facilities fees, and connection charges. We have endeavored to carefully retain this funding in the budget. However, more analysis needs to be done during 2005 to determine if we are adequately identifying and recording operating costs as separate from growth costs, and if our monthly rates and developer fees are properly established. During the strategic plan workshop that was conducted prior to preparation of the budget the board and management recognized the need to further develop the District's organization. We discussed the consistent growth that has occurred in Truckee for the past twenty years and the need for our organization to keep up with that growth. We discussed the need to improve levels of service to our customers and the need to respond more quickly to customer needs. We also recognized that as the organization grows it becomes involved in increasingly complex functions that need to be carefully 2 managed. The middle-management and professional staff of the District is growing. This budget proposes the addition of a finance professional and a human resources professional. This budget recommends an electric rate increase of $1.00 per month per customer to be effective on March 1, 2005. The budget also recommends a water rate increase of$1.73 per month per customer, also to be effective March 1, 2005. We have much to keep us busy during 2005. 3 PART I THE 2005 OPERATING, MAINTENANCE AND REPAIR PLAN ELECTRIC PORTION 4 ELECTRIC OPERATIONS INTRODUCTION The electric budget projects expenditures of $17,471,793 and revenues of $18,062,083 resulting in $590,290 being available for capital investment. This budget recommends that the customer charge portion of the electric rate be increased by$1.00, from the current$5.00 per month to $6.00 per month. Generally speaking, the District electric system is in very good financial health. We solved the wholesale power crisis in 2003 and set the District's finances on an excellent course. When we solved the power supply contract with IdaCorp Energy we were required borrow $26 million. We adopted a short repayment period to shorten the impact on our rates. There are only eight years left on the debt. Meanwhile, in 2005 we will begin to receive an allocation of low cost hydro power from the Western Area Power Administration which will save us conservatively approximately $200,000. Other than the power supply related debt, the electric fund is virtually debt free. Our goal in preparing annual budgets and managing electric system operations is to manage the District's finances carefully through the next eight years. At the end of the eight years, when the power supply debt disappears, we should be in a position to lower rates significantly. We now turn our attention to growth and development in our service area, and how best to respond organizationally and financially. Organizationally, the budget for 2005 recommends that we add a human resources manager and an accounting and finance manager in the administrative services department. These positions are important to developing the management professionalism of the organization and allowing the administrative services manager to deal with long- term and big picture issues. This budget recommends that we replace several vehicles that have reached the end of their useful life. We have been getting over ten years out of our vehicles, thanks to the skill of our vehicle maintenance staff. However, our productivity depends on having a fleet of reliable vehicles to move our crews around our service area. It is time to bring new, more fuel efficient vehicles into our fleet and retire the older vehicles. We need to set our rates to generate adequate cash reserves within the electric utility. This budget maintains the current level in the rate stabilization fund. 5 ELECTRIC OPERATIONS REVENUE STATEMENT OPERATING BUDGET 12 MONTHS ENDED BUDGET REVENUE 2004 SEPTEMBER, 2004 2005 Residential Sales $8,706,174 $8,643,644 $9,244,140 Commercial Sales 6,40Z267 6,480,713 6,851,654 Interdepartmental Sales 1,389,000 1,425,664 1,468,434 Miscellaneous Operating Revenue 175,177 191,305 185,002 Miscellaneous Rents 2,000 1,800 1,800 Standby Revenue 23,655 22,805 22,150 Interdepartmental Rent 270,925 283,776 242,903 TOTAL OPERATING REVENUE $16,969,198 $17,049,707 $18,016,083 Interest Income 37,408 34,934 46,000 Transfer from restricted funds for Broadband 327,225 152,096 0 TOTAL ELECTRIC REVENUE $17,333,831 $17,236,737 $18,062,083 6 SUMMARY OF ELECTRIC REVENUES AND EXPENSES BUDGET 12 MONTHS ENDED BUDGET RECAP REVENUES LESS EXPENSES 2004 SEPTEMBER, 2004 2005 ELECTRIC REVENUES $17,333,831 $17,236,737 $18,062,083 LESS EXPENSES: Board of Directors $58,950 $48,069 $61,000 General Manager 571,347 598,210 440,261 Administrative Services 1,302,408 1,080,760 1,470,428 Planning Services 191,529 128,821 136,504 Support Services 380,118 269,915 333,808 Electric Operations 1,914,366 1,625,300 2,152,957 Power Supply 445,611 320,322 435,861 Purchased Power 8,156,747 8,076,556 8,385,157 Debt Service(Appendix Vill) 3,735,603 3,135,050 3,755,817 Transfer to Reserve-2003 COPS 300,000 325,000 300,000 TOTAL EXPENSES $17,056,679 $15,608,003 $17,471,793 NETAVAILABLE FOR CAPITAL $277,152 $1,628,734 $590,290 7 BOARD OF DIRECTORS The Board of Directors consists of five elected members who serve four-year terms. The Board meets twice each month on the first and third Wednesdays. The first Wednesday is a regular business meeting and the third Wednesday is usually a workshop meeting. The basic responsibility of the Board is to represent the owners of the District who are also our customers. The Board establishes policy and goals for the proper governing of the District and grants authority to staff to perform the day-by-day tasks necessary to serve customer needs. The Board reviews performance of staff by receiving reports and comparing performance to goals. The policies adopted by the Board represent the values that the District seeks to achieve in providing service to its owner/customers. The Board conducted its annual strategic plan workshop and identified issues for focus during 2005. This process has brought great clarity to the strategic direction of the District. This year, like last year, we were forced to look at the growth that has occurred in Truckee for the past several years. The growth rate appears to continue into the foreseeable future and is having an impact on the District's processes, structure and finances. The budget for 2005 continues to deal with these issues. The Board will spend considerable time in 2005 discussing these issues. The Board will look at organizational development issues. Truckee's continued growth requires the District organization to change. We are adding sophisticated professional staff. Upper management of the District needs to redirect its work effort to long-term planning and big picture issues. The Board will discuss organizational structure and redefinition of management tasks. Also, the board will discuss the kinds of issues it should focus on. The Board will be asked to look at the financing of operations as distinct from the financing of growth in our service territory. We have a long standing policy that growth pays it way. We have not taken a disciplined look at whether this policy is being fully implemented and whether the policy is adequately expressed and understood. This is an area for the board to spend time studying. The Board has two new directors bringing new ideas to the governance of the District. The board has expressed an interest in attending workshops sponsored by the Special District Institute and then conducting a workshop in Truckee to develop the new board team. 8 We cannot ignore our wholesale power supply contract. Looking into the future we realize that Truckee long-term power supply involves relationships with UAMPS, NCPA, Sierra Pacific Power Company, Western Area Power Administration and others. We will spend time in 2005 looking at future power supply options to be implemented before the current contract with Constellation Energy Services expires. 2005 will be a busy year for the Board. 9 ELECTRIC EXPENDITURE DETAIL BOARD OF BUDGET 12 MONTHS ENDED BUDGET DIRECTORS 2004 SEPTEMBER, 2004 2005 Outside Services Employed $12,000 $6,185 $12,500 Miscellaneous General Expenses 46,950 41,884 48,500 TOTAL $58,950 $48,069 $61,000 10 GENERAL MANAGER The District's general manager and executive secretary staff the department. The general manager is the administrative head of the District with responsibility for managing the day-by-day affairs of the organization. The executive secretary assists the general manager in all aspects of his duties, especially in arranging for board meetings and keeping proper custody of the records of the District. She also provides administrative assistance to other members of the District's management staff. The executive secretary maintains the District's home page on the Internet, and assists the water and electric planners in preparation of development agreements. An important role of the general manager is to help the board deal with the various issues that come before it for action. The general manager prepares board agendas, and makes certain that matters appearing on the agenda are adequately researched and presented to the directors in a meaningful way. During 2005, the general manager will work closely with the Board and staff on the issues identified during the strategic plan workshop. He will be intimately involved in developing a plan for reorganization of the District's structure. He will work closely on broadband business implementation, growth and development issues, and development of a corporation yard. He will work with the board as the new and incumbent directors work toward establishing the new board team. We have talked a great deal about management structure and management processes. The general manager works closely with the assistant general manager, the administrative services manager, and the water utility manager. Together this group forms the upper management of the District. As general manager, I expect to evolve this group into a kind of management cabinet during 2005. To do so, I need to develop the middle management of the District so the cabinet team can focus on long-term and big picture issues. A staff workshop will be conducted facilitated by Bob Rauch to inaugurate this development process. implementation of the broadband business unit will have a huge impact on the Truckee community and on the District's organization. The general manager needs to be closely involved in this process. The District has been changing. It is important to keep open communication with the rank and file employees so that they remain committed to the District's mission and strategic goals. During 2005, the general manager and the cabinet team need to spend more time clearly communicating the strategic plan to the District's employees. He needs to work with the 11 Labor/Management Steering Committee to provide the employees with a forum to be involved in District strategic planning. He also needs to work with the department heads to improve overall communication and supervision practices at the District. During 2005, a new memorandum of understanding will be negotiated with the International Brotherhood of Electrical Workers. The general manager, assistant general manager and human resources manager will be involved in that process. The general manager also needs to communicate effectively with the District's customers. He needs to be personally involved in preparing written descriptions of District programs and goals. He will need to help market broadband services to residences and commercial customers. During 2005, the general manager needs to focus attention on strategic issues, especially organizational, finance and growth issues. It is clear that the continued rapid growth within the District's service area is the critical factor impacting District productivity and finances. We need to thoughtfully grow the organization to provide excellent customer service and we need to develop the best mix of revenue sources to support the larger organization. 12 ELECTRIC EXPENDITURE DETAIL GENERAL BUDGET 12 MONTHS ENDED BUDGET MANAGER 2004 SEPTEMBER, 2004 2005 Administrative& General- Salaries $290,970 $211,653 $213,354 Office Supplies & Expenses 71,020 86,636 86,338 Outside Services Employed 179,500 262,569 109,500 Injuries & Damages (Safety) 465 130 491 General Advertising Expenses 6,389 10,313 7,633 Misc General Expenses 23,003 26,909 22,946 TOTAL $571,347 $598,210 $440,262 13 ADMINISTRATIVE SERVICES The administrative services department is organized into the following functional areas: customer services and collections, customer billing, meter reading, accounting and finance, data processing, personnel and risk management. Over the last several years, the department has been modernizing its functions to improve staff efficiency. During 2005, the department will continue to automate processes where practical to free up personnel time to perform valuable customer care and accounting functions. We will increase our efforts to archive billing, accounting and customer records on electronic medium. We will be introducing the electronic billing program to customers early in 2005. We will explore having NISC, our software vendor, provide additional services. We will also look to change the District's after-hours call center vendor to one that is well staffed and will integrate customer calls with the District's new outage management system. With all of the changes in technology implemented over the last few years to improve department efficiency and customer programs (customer deposit options, meter reading, billing, payment options and collection procedures), the staff will work in 2005 to update its customer policies relating to these changes. In the last few years, the department has changed. The department has taken on new functions and implemented new technologies and procedures. Job descriptions may no longer properly reflect the work being done. Therefore the jobs in this department will be evaluated and new job descriptions prepared as needed. Updates in the District's electric and water master plans, as well as, all of the proposed development in the Truckee community have identified a substantial need for new electric and water infrastructure to be built and upgraded in the upcoming years. Because of the significant cost to construct infrastructure, increased purchased power costs and possible entrance into the telecommunications business, the Board determined that it needed a comprehensive financial master plan. We will continue to update the financial master plan with financial information as it becomes available. As the District's staff has continued to grow and the personnel laws have become more complex (HIPPA requirements, DOT requirements including drug testing, state compensation reform and general reporting requirements), we have arrived at a point where we need to add a position to manage the human resources functions of the District. As the accounting rules and requirements have become more complex and the District's accounting activities have become more 14 voluminous, we have arrived at a point where we need to add a position to manage the accounting functions of the District. This budget includes two new positions, a human resources manager and an accounting and finance manager to fill those needs. If the District enters the telecommunications business, there will be a need for staff in this department to market new services to customers. 15 ELECTRIC EXPENDITURE DETAIL ADMINISTRATIVE BUDGET 12 MONTHS ENDED BUDGET SERVICES 2004 SEPTEMBER, 2004 2005 Meters/Services Operations Expenses $42,319 $45,968 $38,292 Customer Installation Expense 791 440 33,371 Maintenance of Distribution Lines 14,027 1,209 7,487 Customer Account Operations Expense-Salaries 5,462 328 10,395 Meter Reading Expense 100,640 86,411 69,173 Customer Records & Collections Expense 395,998 385,388 449,251 Provision for Bad Debts 12,920 9,243 12,920 Administrative & Operations General-Salaries 248,526 162,055 357,955 Office Supplies & Expenses 150,608 147,093 171,510 Outside Services Employed 42,745 60,599 48,000 Insurance 282,445 177,130 262,401 Injuries & Damages (Safety) 5,927 4,896 9,673 TOTAL $1,302,408 $1,080,760 $1,470,428 16 PLANNING SERVICES The planning director is responsible for customer communications, energy and water conservation services and administration of the District's public benefits program. During 2004, the planning director developed the District's commitment to the green building movement. He has been active in a local group promoting green building projects in Truckee. It is important for the District to demonstrate its commitment to conservation by participating in programs such as this. He will continue his involvement in 2005. The planning director is also managing the District's water conservation program. We need to continue to talk about wise use of irrigation water. During the past years, we have conducted a program to clearly brand our District's name and services in the community. Since 2001, we have been less active because we have been denied access to cable television advertising. In 2005, we will need to communicate with our customers regarding electric and water rates, Donner Lake water, and broadband business implementation. The planning director will play a key roll in this activity. We will continue to use the local newspaper and other local publications to communicate our message to our customers. We will most likely use first class letters to communicate important messages. We will also continue to support local nonprofit agencies as our way of showing that we are here to serve the community. The program message will focus on our community commitment, reliable service, local control, clean water, environmental concern and customer service. In 2005, we will need to aggressively market our broadband services. The planning director will work with key account customers to bring telecommunications services to their businesses. An important focus of the planning director is to position the District prominently in the Truckee community. He will pursue a program of community involvement and support in 2005. He will continue to involve our District in a wide variety of community events by means of corporate sponsorships and general support. 17 ELECTRIC EXPENDITURE DETAIL PLANNING BUDGET 12 MONTHS ENDED BUDGET SERVICES 2004 SEPTEMBER, 2004 2005 Customer Assistance Expenses $63,164 $57,894 $57,199 Admin & General Salaries 8,157 146 11,632 Office Supplies & Expenses 8,125 7,019 9,260 Professional Services 14,000 (1,470) 6,000 Injuries & Damages 1,224 127 990 General Advertising 14,757 7,381 13,675 Misc General Expense 82,102 57,724 37,749 TOTAL $191,529 $128,821 $136,505 18 SUPPORT SERVICES The support services department is responsible for vehicle maintenance, purchasing and warehousing, and building and grounds maintenance. The department staff consists of a support services manager, a buyer, a warehouseman, a buildings and grounds maintenance technician, and an automotive mechanic (plus a part-time contract mechanic). This department accomplishes much with a small staff. The District has made a substantial investment in its fleet of vehicles. We cannot accomplish our mission in the community unless our fleet of vehicles is mechanically sound. The support services department is responsible for vehicle maintenance, repair and replacement. The maintenance of our fleet has lengthened its life expectancy. However, our severe winters and mountainous geography take a toll on vehicles. Appendix X lists all vehicles in our fleet and the projected year of replacement. This budget recommends replacement of several older vehicles. We find that % ton pick- ups with gasoline engines are not the best buy for our needs. We recommend moving to % ton diesel pick-ups for the water and electric crews. We also recommend purchasing hybrid SUV and % ton pick-ups where that kind of vehicle is appropriate. With the increase in the price of gasoline, diesel and hybrid fuel vehicles will save money. The department is responsible for the purchase, receipt and proper storage of material used in our water and electric systems. This function places the support services department in a crucial interface role between the operating departments and the finance department. The smooth flow of information across this interface is important to managing the District. The strategic plan identified the need to improve this aspect of management information. The 2005 budget recommends implementing a warehouse bar-coding system to improve the availability of information. We need to change the warehouse operation to restore order to the purchasing and accounting for materials. As part of the organizational restructuring we will evaluate a type of closed warehouse. We have talked for years about our need for adequate space for storage of material and vehicles. The strategic plan identified the need to develop a new corporation yard. Our plan is to sell land acquired from the Steele Family Trust and use the proceeds to design and build a corporation yard. In 2005, we will sell land to complete the planning. We would like to be in position to build in 2006 and 2007. 19 The support services department is responsible for maintenance of the District's buildings and grounds. As our buildings expand, this department will need additional resources to do its job and it will need to focus more on a manageable set of related tasks. The support services manager will be involved in administering the sale of any District owned land that we decide to sell in 2005. She will also be involved in planning for the corporation yard. 20 ELECTRIC EXPENDITURE DETAIL SUPPORT BUDGET 12 MONTHS ENDED BUDGET SERVICES 2004 SEPTEMBER, 2004 1 2005 Misc Distribution Expense 0 4228 0 Administrative & General-Salaries 68,046 72,887 66,080 Office Supplies & Expenses 12,270 (9,019) 14,475 Injuries & Damages (Safety) 10,137 10,277 7,729 Maintenance of District Office Building 288,165 191,006 244,774 Maintenance of Communications Equipment 1,500 536 750 Transportation Expenses 359,852 448,964 348,290 Overhead Allocation Transportation (359,852) (448,964) (348,290) Purchasing & Warehousing 177,096 280,096 177,326 Overhead Allocation Inventory (177,096) (280,096) (177,326) TOTAL $380,118 $269,915 $333,808 21 ELECTRIC OPERATIONS The electric operations department is responsible for operating, maintaining, repairing and expanding our electric distribution system. The department is currently staffed by a superintendent, two electric system engineers, a planner, an inspector, two electricians, one electrical technician, one substation lineman, two foreman, one leadman, six journey linemen and two apprentices. No additional staff is recommended for 2005. During 2005, we will experience significant growth in our service area. We will work with developers who request service. This activity dominates the work program of our engineers, planner and the field crews. However, we cannot ignore routine system maintenance. During 2005, we will refocus the attention of one of our system engineers to system reliability. We will review the system protection scheme and make adjustments as necessary. The construction crew will install a new type of fuse and bird guards on the poles in the Prosser Lakeview area to reduce the number of outages experienced in that area. We will return to a pole replacement program throughout the District to maintain the integrity of our overhead system. We will continue the tree trimming program that has helped reduce outages during the past two years. Priority will also be placed on insuring that our system complies with General Orders 95, 128 and 165 requirements. With the increased engineering staff we will be able to complete the development of construction units thus providing much needed assistance to the estimating and accounting departments. We will also be able to update our electric SCADA system. With the rapid growth of Truckee comes increased load on the electric system. Thus, without implementing electric system capacity improvements, areas of our electric distribution system may begin to experience problems. The budget for 2005 recommends implementing several electric master plan projects funded by facilities fees. 22 ELECTRIC EXPENDITURE DETAIL ELECTRIC BUDGET 12 MONTHS ENDED BUDGET OPERATIONS 2004 SEPTEMBER, 2004 2005 Operations/PM Sup & Engineering $274,181 $218,617 $250,966 Substation Operations/PM 199,154 128,581 180,351 Distribution Operations/PM 678,744 574,028 840,626 Security/Street Light Operations/PM 6,600 0 7,343 Meter Operations/PM 73,825 106,815 99,300 Customer Installation Operations/PM 38,876 94,160 89,377 Misc General Operations/PM 203,864 187,316 230,685 Rents 18,600 6,540 18,600 Maintenance of Station Equipment 19,597 5,505 20,604 Maintenance of Distribution Lines 297,904 193,813 302,671 Maintenance of Line Transformers 7,127 (25) 10,979 Maintenance of Security/Street Lights 14,617 4,100 10,686 Maintenance of Meters 3,368 0 3,551 Injuries & Damages (Safety) 77,909 105,850 87,218 TOTAL $1,914,366 $1,625,300 $2,152,957 23 POWER SUPPLY This department is headed by the assistant general manager (who serves as power supply engineer) and also includes the GIS coordinator and a mapping technician. The highest priority for this department is to guide the District in acquisition of its wholesale power supply. The power supply engineer will continue to represent the District at UAMPS and NCPA. He will continue to manage two FERC cases involving requests by SPPCo for increases to their transmission rate. Also during 2005, we will begin to receive deliveries of low cost hydro power from the Western Area Power Administration. He will manage the District's contracts with Constellation Energy and Sierra Pacific Power Company. The role of the power supply engineer includes optimizing the benefits of the Constellation and Western contracts by taking advantage of opportunities in the market to buy energy outside the base load contracts. We need to think beyond the Constellation Energy Services contract. The power supply engineer will represent our District at the Utah Association of Municipal Power Systems. He will make recommendations to the board regarding possible participation in generating plants to be constructed by DAMPS. Our geographic information system coordinator has helped us install a state-of-the-art data management system. This new system is forming the foundation connecting our water and electric maps, customer service information, modeling capability, automated design and reporting system. In 2005, we will take this system to the next level by making the system maps available to the water and electric crews in the field. The budget recommends acquisition of field computers that can be used by the crews to access up-to-date information and make redline edits to the maps as they perform work in the field. During 2005, we will also implement a work management system that creates an interface between the GiS and the NISC systems. This is a crucial part of the improved management information system that the strategic plan identified as a high priority. 24 ELECTRIC EXPENDITURE DETAIL POWER BUDGET 12 MONTHS ENDED BUDGET SUPPLY 2004 SEPTEMBER, 2004 2005 Operations Supervision & Engineering $158,747 $142,012 $134,152 Misc General Operations 88,870 106,488 75,600 Maintenance Supervision & Engineering 3,359 0 0 Professional Services 58,800 60,368 106,500 Safety 7,027 383 8,515 Regulatory Commission Expense 128,808 11,071 111,094 TOTAL $445,611 $320,322 $435,861 25 PART II THE 2005 OPERATING, MAINTENANCE AND REPAIR PLAN WATER PORTION 26 WATER OPERATIONS INTRODUCTION The water operations budget projects expenditures for 2005 of $7,188,258 and revenues of $8,009,131 resulting in $820,873 being available for capital investment. This water operations budget recommends a water rate increase of $1.73 per month. We have discussed the problem with the declining block commercial water rate. We retained the services of Reiter Lowry Consultants to conduct a water rate study and recommend a new metered rate structure. We will need to complete this project early in 2005. Huge changes are taking place in the water operations. We have rebuilt the Donner Lake water system. We have received a low interest loan from the California State Revolving Fund. We have completed connection of the Glenshire water system to the main District water system. The community is coming under increasing development pressure. Water service is complex in a mountain environment. Our water supply is in the Mattis Valley in the southeast portion of our service territory. Our customer base is spread over forty-four square miles and covers an elevation change from 5,800 feet to 7,350 feet. We have 11 wells, 200 miles of pipeline, 36 storage tanks, and 26 pump stations. This complex system is expensive to operate, maintain, repair and replace. Looking out into the future, i can predict that water rates will increase gradually year by year. However, when one considers the impact of good quality water on one's life, the price is a bargain. In the past the water fund has relied on the financial strength of the electric fund to keep it going. During 2003, we established a Surplus Land Trust Fund to advance money needed for water capital projects. Now, we need to manage water system capital such that it does not continue to rely on electric system funds to finance its needs. The water fund needs to stand on its own. The strategic plan identified five issues that impact the District's water utility: Replacement of aging water system infrastructure Development of improved management information Development of a corporation yard Sale of District-owned land Development of the District organizational structure to meet future demands 27 The budget for 2005 recommends that we continue to replace leaking water lines in Tahoe Donner. We need to take a look at how we conduct pipeline replacement programs with the goal of saving money and easing the burden of managing contracts. This will be a discussion staff wants to have with the board. The budget provides funding for development of a new well, rebuilding and expanding the Sierra Meadows pump station and the Airport well building. The budget provides funds to conduct a pilot study of removal of arsenic from the Northside well. Additionally, it recommends replacement of aging vehicles with new, fuel efficient models. As discussed in the electric portion of the budget, continued growth in our service territory consumes much of the productive capacity of our organization. Growth is occurring so rapidly now that we need to increase the ability of the organization to function. Therefore, the budget recommends adding a construction inspector position. We need to complete reconstruction of the Donner Lake water system. We also need to sell real property at Donner Lake and Glenshire and perform a final accounting of the costs for those two projects so we can true-up the financing. The 2005 year will be a challenging year for the water utility. We now need to make sure we fully understand the financial commitments we are making, the revenue sources we are relying on, and the financial position we need to maintain. 28 WATER OPERATIONS REVENUE STATEMENT OPERATING BUDGET 12 MONTHS ENDED BUDGET REVENUE 2004 SEPTEMBER, 2004 2005 Residential Sales $6,123,347 $6,144,276 $6,371,318 Commercial Sales 737,212 810,572 822,869 Interdepartmental Sales 1,189 1,406 1,434 Fire Protection Fees 122,489 115,905 118,223 Misc. Operating Revenue 84,750 81,679 81,830 Miscellaneous Rents 17,806 25,524 25,600 Standby Revenue 136,400 148,520 145,500 TOTAL OPERATING REVENUE $7,223,193 $7,327,882 $7,566,774 Interest Income 12,770 139,127 139,111 Transfer from facilities fees to pay debt service 150,158 0 303,246 TOTAL WATER REVENUE $7,386,121 $7,467,009 $8,009,131 29 SUMMARY OF WATER REVENUES AND EXPENSES BUDGET 12 MONTHS ENDED BUDGET RECAP REVENUES LESS EXPENSES 2004 SEPTEMBER, 2004 2005 WATER REVENUES $7,386,121 $7,467,009 $8,009,131 LESS EXPENSES Board of Directors 56,450 46,960 57,750 General Manager 223,345 413,938 351,162 Administrative Services 784,805 680,721 898,425 Planning Services 39,596 43,908 70,558 Support Services 87,863 83,267 76,534 Water Operations 3,779,469 4,091,091 3,891,977 Power Supply 122,282 80,474 92,915 Interdepartmental Rent(Appendix I) 270,925 283,776 242,903 Debt Service(Appendix IX) 1,478,361 1,391,270 1,478,034 Transfer to Prop 55 Reserve Fund 28,000 28,000 28,000 TOTAL EXPENSES $6,871,096 $7,143,405 $7,188,258 NET AVAILABLE FOR CAPITAL $515,025 $323,604 $820,873 30 BOARD OF DIRECTORS The narrative contained in the electric portion of the budget describes the general function and organization of the Board of Directors. It will not be repeated here. This section will describe specific water issues within the 2005 budget. The District needs to complete the reconstruction of Donner Lake water system and arrange for permanent financing. The board will review the status of the project to date and will develop a strategy for completing it. The Glenshire water system project also needs to be completed by selling the surplus land and performing a final accounting. The Board will deal with the water rate study being conducted by Reiter Lowry Consultants. We need to restructure the commercial metered rate which currently has a declining block structure. We will also review a possible residential metered rate to encourage wise irrigation of landscaping. 31 WATER EXPENDITURE DETAIL BOARD OF BUDGET 12 MONTHS ENDED BUDGET DIRECTORS 2004 SEPTEMBER, 2004 2005 Outside Services Employed $12,000 $6,026 $12,500 Miscellaneous General Expenses 44,450 40,934 45,250 TOTAL $56,450 $46,960 $57,750 32 GENERAL MANAGER The basic functions of the General Manager and the organization of that department have been described in the narrative in the electric portion of the budget. It will not be repeated here. Specifically related to the water utility, the general manager will be involved in completion of the Donner Lake and Glenshire water systems projects. Long-term financing and revenues need to be determined for these projects. Communication with Donner Lake and Glenshire customers during 2005 will be a must. Water utility financing may be the biggest issue the District needs to face during 2005. We need to review our policy regarding growth paying its way and then review whether our fees are accomplishing the intent of the policy. We need to develop the appropriate revenue source for operations and the appropriate revenue source for growth. The revenue sources need to generate adequate cash reserves. The general manager needs to focus attention on these issues. We need to complete the water rate study being conducted by Reiter Lowry Consultants. 33 WATER EXPENDITURE DETAIL GENERAL BUDGET 12 MONTHS ENDED BUDGET MANAGER 2004 SEPTEMBER, 2004 2005 Administrative & General-Salaries $135,168 $211,641 $213,354 Office Supplies & Expenses 5,520 23,137 6,338 Outside Services Employed 64,500 157,804 109,500 Injuries & Damages(Safety) 465 130 491 General Advertising Expenses 6,389 8,670 7,633 Misc General Expenses 11,303 12,556 13,846 TOTAL $223,345 $413,938 $351,162 34 WATER EXPENDITURE DETAIL ADMINISTRATIVE BUDGET 12 MONTHS ENDED BUDGET SERVICES 2004 SEPTEMBER, 2004 2005 Meters/Services Operations Expenses 2,227 3,177 2,015 Maintenance of Distribution Lines 738 393 394 Customer Account Operations Expense-Salaries 3,641 308 6,930 Meter Reading Expense 33,547 30,016 24,304 Customer Records & Collections Expense 263,999 242,499 299,501 Provision for Bad Debts 4,080 4,301 4,080 Administrative& Operations General-Salaries 165,684 110,571 238,637 Office Supplies & Expenses 100,406 93,777 114,340 Outside Services Employed 40,335 49,366 47,000 Insurance 165,880 143,892 154,108 Injuries&Damages(Safety) 4,268 2,421 7,116 TOTAL $784,805 $680,721 $898,425 35 WATER EXPENDITURE DETAIL. PLANNING BUDGET 12 MONTHS ENDED BUDGET SERVICES 2004 SEPTEMBER, 2004 2005 Customer Assistance Expenses $10,685 $9,685 $29,299 Admin & General Salaries 3,496 109 4,985 Office Supplies & Expenses 3,325 1,556 2,740 Professional Services 6,000 16,657 4,000 Injuries & Damages 524 127 424 General Advertising 8,896 5,138 5,861 Misc General Expense 6,670 10,636 23,249 TOTAL $39,596 $43,908 $70,558 36 WATER EXPENDITURE DETAIL SUPPORT BUDGET 12 MONTHS ENDED BUDGET SERVICES 2004 SEPTEMBER, 2004 2005 Administrative & General- Salaries $68,046 $72,658 $66,080 Office Supplies & Expenses 8,180 742 1,975 Injuries & Damages(Safety) 10,137 9,331 7,729 Maintenance of Communications Equipment 1,500 536 750 TOTAL $87,863 $83,267 $76,534 37 WATER OPERATIONS The proposed staffing for the water operations department for 2005 consists of a water utility manager, a superintendent, a water system engineer, an associate water engineer, a planner, a water quality inspector, two foremen, two lead technicians, five service technicians and two service technicians-in-training, a construction inspector and a contracts administration clerk. This represents an increase of one position, the construction inspector. The water operations department is organized into three groups: 1) The first group focuses on distribution system operations, maintenance and repair. 2) The second group focuses on operation, maintenance and repair of pumps and motors and on water quality and treatment facilities. 3) The third group focuses on engineering and planning. The water department has big challenges to manage in 2005. We need to bring a new well on line. We need to complete the reconstruction of the Donner Lake water system. We will replace leaking water lines in Tahoe Donner. We will rebuild and expand the Airport well building and the Sierra Meadows pump station. We will conduct a pilot study of arsenic removal. The biggest challenge is to deal with developers who bring significant growth in our customer base and demand for water. As described elsewhere in this document, growth is our biggest challenge. It overburdens our organization staff and our finances. We need to add the construction inspector to help deal with growth. 38 WATER EXPENDITURE DETAIL WATER BUDGET 12 MONTHS ENDED BUDGET OPERATIONS 2004 SEPTEMBER, 2004 2005 Operations Supervision & Engineering $141,589 $323,683 $161,047 Facilities Operations 478,086 625,367 545,415 Power Supply 1,406,945 1,469,787 1,445,157 Distribution Operations/PM 141,772 480,086 16ZI88 Contract Service Agreements/pm 37,637 22,774 38,979 Misc General Operations/PM 216,059 196,514 297,659 Rent 4,400 5,650 5,600 Maintenance of Operations Sup &Engineering 92,872 98,676 95,104 Maintenance of Facilities 513,753 223,271 449,617 Maintenance of Distribution Lines 698,070 607,658 608,464 Maintenance of Contract Service Agreements 0 Z548 Z070 Outside Services Employed 8,000 168 10,000 Injuries & Damages 40,286 34,909 70,677 TOTAL $3,779,469 $4,091,091 $3,891,977 39 WATER EXPENDITURE DETAIL POWER BUDGET 12 MONTHS ENDED BUDGET SUPPLY 2004 SEPTEMBER, 2004 2005 Operations Supervision &Engineering $48,815 $41,807 $26,155 Misc General Operations 73,467 38,667 66,760 Admin & General Operations 0 0 0 TOTAL $122,282 $80,474 $92,915 40 ELECTRIC AND WATER CAPITAL PLANS The capital portion of the budget document contains a listing of the capital projects being suggested for 2005, along with the recommended funding source. First, the electric system projects and related funding are listed, then the same for the water system projects. This section of the 2005 Budget is derived in part from the Five- Year Plan of Capital Expenditures. The first year of the five-year plan is contained in this section of the 2005 Budget, along with other capital projects that are small enough to be eliminated from the five-year plan, but need to be reflected in the budget document for accounting purposes. When the designated funding source is operations (OP), it means that rates are paying for the projects. When customer contributions and developer contributions (CC and DC) are designated as the funding source, it means that a connection fee or some other fee is paid by a customer or developer. Other sources are facilities fees (FF) which have been set aside for support of certain kinds of capital projects, and we can borrow funds to pay for capital projects with such projects listing debt (LOAN) as the funding source. The use of funds is the listing of specific capital projects and utilizes brief descriptive titles to designate the individual recommended capital projects. Hopefully the brief descriptions are adequate. The electric capital projects total $2,874,222 and the water capital projects total $2,613,900 exclusive of Donner Lake water System and Glenshire Water System. These two projects are funded separately from the overall District budget and are paid for by means of a stream of payments derived from Donner Lake and Glenshire customers respectively. This may appear to be a very large number, but our water and electric systems are capital intensive. The level of reliable service we provide to our customers depends in large measure on the strength of system infrastructure and the equipment we use. Broadband is a topic that needs to be addressed. Deployment of the fiber-to-the-premise system has encountered many delays, some related to our own cautious evaluation of the business plan, others contrived by 41 fearful competitors. We have a complete construction specification. We have contractors ready to construct the system and provide content. We have investors ready to provide funding. It is entirely likely that we will be able to move forward during 2005. This is a topic that the board will need to deal with. 42 PART Ill THE 2005 CAPITAL IMPROVEMENT PLAN ELECTRIC PORTION 43 ELECTRIC CAPITAL PLAN SOURCE OF FUNDS SOURCE OF FUNDS BUDGET 2005 Operations OP $590,290 2004 Loan Escrow Fund ESCROW 141,000 Loan LOAN 330,540 Customer Contributions CC 323,196 Developer Contributions DC 678,980 Facilities Fees Transfers FF 785,216 Land Sales LAND 25,000 Total Source of Funds $2,874,222 USE OF FUNDS SOURCE OF FUNDS BUDGET 2005 ADMINISTRATIVE SERVICES: Miscellaneous hardware OP 12,000 Miscellaneous office equipment OP 7,500 Personal computers/server replacement OP 15,000 Upgrade meter reading handheld devices OP 5,000 New meter reader vehicle LOAN 26,000 Subtotal $65,500 SUPPORT SERVICES: Roof repair/replacement OP $ ,000 25 Corporation yard LAND 25,000 Barcode system ESCROW 45,000 Wheel balancer OP 7,000 Mig welder OP 2,100 Meter awning/roof overhang OP 15,000 Optical headlight aimer OP 1,700 Subtotal $127,800 44 ELECTRIC CAPITAL PLAN USE OF FUNDS SOURCE OF FUNDS BUDGET 2005 ELECTRIC OPERATIONS: Line extensions and upgrades CC $167,356 Pole replacements OP 111,355 Residential services/upgrades CC 176,852 Meters-purchase & test CC & OP 111,000 Transformers-purchase & 1st time install CC & OP 142,891 Commercial services CC 19,399 Development agreements DC 678,980 Various District projects FF/LOAN 820,216 Recloser controls OP 15,000 112 ton pickup truck LOAN 35,000 314 ton diesel truck with cab and chasis LOAN 36,000 1 ton diesel truck with cab and chasis LOAN 31,000 SUV LOAN 28,000 112 ton 4 X 4 pickup truck LOAN 35,000 Bucket truck ESCROW& OPS 120,000 Heavy duty wire puller LOAN 44,000 Subtotal $2,572,049 POWER SUPPLY: Field computers and software LOAN 32,540 OMS Login/Designer Login OP 3,000 Geographic Information Acquisition OP 45,333 SUV LOAN 28,000 Subtotal $108,873 Total Capital Projects & Equipment $2,874,222 45 PART IV THE 2005 CAPITAL IMPROVEMENT PLAN WATER PORTION 46 WATER CAPITAL PLAN SOURCE OF FUNDS SOURCE OF FUNDS BUDGET 2005 Operations OP $820,873 Customer Contributions CC 257,916 Loans LOANS 104,000 Developer Contributions DC 322,111 Facilities Fees FF 1,109,000 Total Source of Funds $2,613,900 USE OF FUNDS SOURCE OF FUNDS BUDGET 2005 WATER OPERATIONS: Residential service upgrades OP $27,067 Residential services - new CC 201,216 Residential services -MWE/PR CC 3,942 Residential services - Hirschdale CC 1,847 Meters-purchase/test OP& CC 63,390 Commercial service upgrades OP 47,217 Commercial services-new CC 19,216 Development agreements DC 322,111 Various capital projects FF& OP 1,741,144 Arsenic removal-pilot plant study OP 27,000 Gas powered pressure test pump OP 1,700 P2 portable valve operator(electric) OP 5,500 Metrotech 810RF line tracer OP 12,000 2800 generators OP 4,400 LD-12 water leak detector OP 3,150 BoMax jumping jack OP 6,000 Transducers for Martis, Glenshire Drive well FF 9,000 47 USE OF FUNDS SOURCE OF FUNDS BUDGET 2005 314 ton diesel service truck 4 X 4 LOAN 34,000 SUV LOAN 28,000 1 ton diesel service truck LOAN 42,000 Subtotal $2,599,900 POWER SUPPLY: MWH soft water analysis OP $14,000 Subtotal $14,000 Total Capital Projects & Equipment $2,613,900 48 PART V THE 2005 APPENDICES 49 APPENDIX I INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS: Building operation/PM/repair 281,555 Depreciation of jointly used assets 205,851 Building rental income (1,600) TOTAL COSTS $485,806 The above costs are paid by the electric fund; the water fund will be charged with 50%, which is $242,903 through a monthly rental charge of$20,242 50 APPENDIX 11 BUDGETED POSITIONS BY DEPARTMENT ADMINISTRATION General Manager $131,123 Executive Secretary 54,642 Director of Telecommunications 98,342 ADMINISTRATIVE SERVICES Administrative Services Manager 98,342 Human Resources Manager(9 months) 40,961 Accounting&Finance Manager 78,666 Senior AccountanUAccounting Analyst 70,803 AccountinglComputer Operations Supervisor 49,442 Customer Serv/Collections Supervisor 49,525 Customer Billing Supervisor 54,475 Work Order Accounting Supervisor 49,525 Senior Clerks(4) 169,666 General Clerks(3) 120,890 Meter Reader Coordinator 49,462 Meter Reader 47,070 Overtime 14,863 PLANNING SERVICES Planning Services Manager 78,686 SUPPORTSERWCES Support Services Manager 81,952 WarehousalRelief Utility Worker 47,694 Facilities MaintenancelRelief Utility Worker 47,694 Automotive Mechanic 60,528 BuyenClerk 49,109 Overtime 3,457 ELECTRIC OPERATIONS Electric Superintendent 87,422 Electric Engineer 92,872 Associate Engineer 66,955 Electric Services Planner 79,768 Electric Inspector 68,058 ElectricianlMeter Technician(2) 140,192 Electric Technician 64,730 Foreman,Power Services(2) 149,718 Substation Lineman 70,096 Lead Lineman 70,096 Journeyman Linemen(7) 408,346 Apprentice Linemen(2) 96,595 Standby 43,972 Overtime 70,621 POWER SUPPLY Power Supply EngineerlAsst General Manager 120,203 CIS Specialist 85,238 DraftsmanlMapping Technician 61,542 WATER OPERATIONS Water Utility Manager 98,342 Water Civil Engineer 92,872 Associate Engineer 75,608 Water Services Planner 71,968 Water Superintendent 83,034 Water Inspector 62,171 Water Quality Inspector 65,458 Water Distribution Technician 55,994 Water Foremen(2) 130,915 Water Leadmen(2) 117,811 Water Service Technicians(3) 151,965 Water ServiceTechnicians in Training(3) 129,875 Contracts Administration Clerk 45,448 Standby 36,818 Overtime 71,125 TOTAL $4,602,787 51 APPENDIX III LABOR OVERHEAD VALUE OF BENEFITS Medical insurance $973,370 Dental insurance 94,080 Vision insurance 16,000 Prescription reimbursement 2,000 Hospital deductible 2,000 Well baby care 2,500 Long term disability 33,943 Life insurance 45,897 Longevity 15,050 FICA 277,713 Fed Mad 66,740 State compensation 297,202 Pension 959,876 Value of non-productive labor 622,604 (vacation, sick leave, holiday) TOTAL VALUE OF BENEFITS $3,408,975 PRODUCTIVE LABOR Recommended labor(Appendix ll) $4,602,787 Less value of non-productive labor (622,604) TOTAL PRODUCTIVE LABOR $3,980,183 PAYROLL OVERHEAD 85.65% (Value of benefits/productive labor) BENEFITS AS A PERCENT OF TOTAL LABOR AND BENEFITS 46% 52 APPENDIX IV TRANSPORTATION OVERHEAD This appendix assumes that the cost of operating, maintaining and replacing District vehicles and equipment will be recognized as an overhead charged against direct labor that uses the vehicles. TRANSPORTATION& EQUIPMENT EXPENSE Vehicle operation, repair, fuels & misc expenses $298,044 Interest expense (vehicle debt service) 26,409 Insurance 50,490 Replacement(depreciation expense) 192,500 TOTAL TRANSPORTATION EXPENSE $567,443 DIRECT LABOR EXPENSE General Manager $47,493 Administrative Services 81,361 Support Services 47,424 Electric Operations 1,125,663 Power Supply 17,443 Water Operations 951,476 TOTAL DIRECT LABOR EXPENSE $2,270,860 TRANSPORTATION/EQUIPMENT OVERHEAD ($524,545 DIVIDED BY$2,079,628) 24.99% 53 APPEND V INVENTORY OVERHEAD PURCHASING/WAREHOUSING Labor $73,701 Accounts Payable 17,197 Overhead: Labor 63,125 Transportation 5,065 Administrative 1,231 Warehouse Operations: Utilities & Building Maintenance 13,510 Miscellaneous (insurance) 4,500 TOTAL COST $178,329 ESTIMATED INVENTORY ISSUES Support Services $15,000 Electric Operations 348,392 Water Operations 272,150 TOTAL ESTIMATED ISSUES $635,542 INVENTORY OVERHEAD 28.06% 54 APPENDIX V! ADMINISTRATIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor $8,189 Accounts Payable 1,911 Overhead.- Labor 7,013 Transportation 563 Administrative 137 Warehousing Operating Costs Utilities & Building Maintenance 1,501 Miscellaneous (insurance) 500 Subtotal $19,814 Common Supplies Outside staff supplies $15,000 Inside staff supplies 12,500 Joint department supplies 5,000 Subtotal $32,500 TOTAL COMMON SUPPLY COSTS $52,314 TOTAL PRODUCTIVE LABOR $3,980,183 ADMINISTRATIVE OVERHEAD 1.31 55 APPENDIX V1l CONSTRUCTION OVERHEAD Step 1 General direction and general construction costs from budget: Electric Operations $166,888 Water Operations 66,784 GIS&Mapping 48,096 Total $281,768 Step 2 Determine capitalized labor as a percent of total labor: Capitalized Labor = $786,967 = 31.19% Total Electric& Water Labor $2,523,330 Step 3 Determine construction overhead to be capitalized: Total General direction &construction costs $281,768 of labor to be capitalized 31.19% General direction&construction costs to capitalize $87,877 Construction accounting costs to capitalize 186,966 $274,843 Step 4 Calculate construction overhead to be applied to capital improvements: Capital Overhead = $274,843 = 34.92% Capital Labor $786,967 CONSTRUCTION OVERHEAD= 34.92% 56 APPENDIX M ELECTRIC DEBT SCHEDULE Principal and Interest Payments Transformer MSG MSG MSG MSG MSG MSG New Purchased Power CONSUMER YEAR Loan #4 #5 #7 #8 #9 #10 Loan Contract Buyout DEPOSITS TOTAL 2005 58,929 9,802 8,824 14,183 IZ860 108,369 38,495 29,605 3,473,750 1,000 3,755,817 2006 56,929 14,427 12,860 108,369 38,495 59,211 3,475,275 3,767,566 2007 58,929 6,423 108,369 38,495 59,211 3,476,475 3,747,902 2008 58,929 108,369 9,524 59,211 3,475,825 3,711,958 2009 58,929 27,092 59,211 3,475,000 3,620,232 2010 58,929 59,211 3,476,753 3,594,902 2011 58,929 59,211 3,477,713 3,595,852 2012 58,929 29,605 3,473,888 3,562,421 2013 46,578 46,578 2014 0 518,008 9,802 8824 28,610 32,144 460,569 125,110 414,476 27,804,688 1,000 29,403,229 Everen Securities-Loan repayment schedule for the financing of the purchase of 5 substation transformers MSG#4-Municipal Services Group Loan#4-Lease purchase of the 2000 Line Truck MSG#5-Municipal Services Group Loan#5-Lease purchase of multi-purpose sport utility vehicles 8 1 112 ton pick-up truck MSG#7-Municipal Services Group Loan#7-Lease purchase of snow removal equipment MSG#8-Municipal Services Group Loan#8-Lease purchase of vehicles MSG 99-Municipal Services Group Loan#9-Lease purchase of equipment 57 APPENDIX IX WATER DEBT SCHEDULE Principal and Interest Payments 1996 COPS/Sys DWR MSG MSG MSG MSG MSG New INTERNAL INTERNAL CONSUMER YEAR IMPRVMTS PROP 55 #1551 #5 #6 #8 #9 Loan LOAN#2 LOAN#3B DEPOSITS TOTAL 2005 8OZ566 306,437 150,158 4,567 37,946 20,345 57,663 9,315 44,970 43,766 300 1,478,034 2006 805,243 306,437 150,158 20,345 57,663 18,630 44,970 43,766 1,447,211 2007 806,868 306,437 150,158 10,180 57,663 18,630 44,970 43,766 1,438,671 2008 803,183 306,437 150,158 57,663 f8,630 44,970 43,766 1,424,806 2009 803,355 306,437 150,158 14,416 18,630 44,970 43,766 1,381,731 2010 807,093 306,437 150,158 18,630 44,970 43,766 1,371,053 2011 799,303 306,437 150,156 18,630 44,970 43,766 1,363,263 2012 805,495 306,437 150,158 9,315 44,970 43,766 1,360,141 2013 804,845 306,437 150,158 44,970 43,766 1,350,176 2014 8OZ345 306,437 150,158 44,970 43,766 1,347,676 2015 808,470 306,437 150,158 39,319 43,766 1,346,150 2016 807,670 306,437 150,158 43,766 1,305,031 2017 805,220 306,437 150,158 43,766 1,305,581 2018 801,740 306,437 43,766 1,151,943 2019 806,640 305,437 1,113,077 2020 804,360 306,437 1,110,817 2021 785,230 153,218 938,448 2022 0 13,659,645 5,056,206 1,952,054 4,567 37,946 50,869 245,067 130,410 489,018 612,725 300 22,238,808 Loan DescrlpSons: 1996 COPS-Water system projects DWR/Pop 55-Water system improvement projects MSG#1551-Municipal Services Group#1561-Bridge Street Tank construction MSG#5-Municipal Services Group#5-Lease purchase of water department share of sport utility vehicles MSG#6-Municipal Services Group#6-Lease purchase of 3 water vehicles MSG#8-Municipal Services Group#8-Lease purchase of water department vehicles MSG#9-Municipal Services Group Loan#9-Lease purchase of equipment New Loan-Lease purchase of 3 water vehicles Internal Loan#2-Water System Improvements,borrowed from Reserve for Future Meter Fund(Resolution# 95-12) Internal Loan#38-Water department loan,borrowed from Reserve for Future Meter Fund 58 APPENDIX X VEHICLE REPLACEMENT SCHEDULE UNIT# DESCRIPTION DEPARTMENT CONDITION Miles REPLACEMENT 32 1991 GMC Jimmy 4WD Water Fair/Poor 69k 2005 39 1992 GMC F.B. 1 Ton Water Fair 88k 2005 31 1991 GMC Jimmy 4WD Power Supply Fair/Poor 110k 2005 38 Flat Bed Wire Truck Electric Poor 114k 2005 33 1992 GMC Sonoma Pickup 4WD Electric Poor 127k 2005 22 1991 GMC Pickup 4WD 112 Ton Service Body Electric Poor 106k 2005 5 1994 GMC Pickup 4WD 314 Ton Service Body Electric Fair/Poor 120 2005 35 1992 GMC Sonoma Pickup 4WD Administrative Services Fair/Poor 106k 2005 43 1998 GMC 4WD Service Body Water Good 72k 2006 3 1991 tnt7 Service Truck Water Good 62k 2006 9 1997 GMC Pickup 4WD 314 Ton Water Good 88k 2006 15 1985 Caterpillar F35 Forklift Support Services Fair NA 2006 28 1998 GMC Pickup 4WD 314 Ton Service Body Electric Good 78k 2006 82 1963 Pole Trailer Electric Fair NA 2006 18 1993 Intl.Bucket Truck 4WD Electric Fair 130k 2006 36 1992 GMC Sonoma Pickup 4WD Administrative Services Fair 89k 2006 37 1992 GMC 112 Ton Pickup 4WD Water Good 50k 2007 25 1998 GMC Pickup 4WD 314 Ton Water Good 70k 2007 23 1992 GMC Sonoma Pickup 4WD Power Supply Fair 75k 2007 19 1997 Chevy Pickup 4WD a14 Ton Service Body Electric Good 69K 2007 44 1998 GMC 4WD 314 Ton Service Body Electric Good 51K 2007 1 1993 GMC Jimmy 4WD Electric Fair 114k 2007 41 1992 GMC Pickup 314 Ton Electric Fair 72K 2007 13 1987 Caterpillar Backhoe Electric Fair NA 2007 40 1992GMCJimmy4WD OT Fair/Poor 98k 2007 6 1989 Intl Dump Truck, 10 yd Water Good 17K 2008 34 1992 Intl. 2 Axle Dump Water Good 34K 2008 14 1987 John Deere Backhoe 4WD— Water Fair NA 2008 20 2000 GMC Jimmy 4WD Water Good 41 K 2010 4 2000 GMC Jimmy 4WD General Manager Good 34K 2010 10 1991 Intl DiggenDerrick Truck, 4WD Electric Good 45K 2010 7 2000 GMC Jimmy 4WD Electric Good 43K 2010 59 APPENDIX X VEHICLE REPLACEMENT SCHEDULE UNIT# DESCRIPTION DEPARTMENT CONDITION REPLACEMENT 75 1995 928F Caterpillar Wheeled Loader Water/Electric/Support Svcs Good NA 2010 12 2000 GMC Pickup 4WD 314 ton Electric Good 23K 2010 45 1999 Ford F250 4WD Utility Truck Water Good 52K 2011 24 2001 Fond F550 4WD Utility Trucks Water Good 38K 2011 29 2001 Ford F550 4WD Utility Trucks Water Good 30K 2011 30 2001 Ford F550 4WD Utility Trucks Water Good 37K 2011 8 1997 GMC Pickup 4WD 314 Ton Support Services Good 46K 2011 42 1996 4WD Flatbed w/Knuckle Boom Electric Good 16K 2011 46 2002 GMC Dora-Max Diesel 4WD Utility Truck Water Good 25K 2012 47 2002 GMC Dura-Max Diesel 4WD Utility Truck Water Good 18K 2012 48 2002 Chevy Blazer 4WD Water Good 15K 2012 27 2000 GMC 112 Ton Pickup 4WD Electric Good 20K 2012 49 2002 Chevy Blazer 4WD Electric Good 23K 2012 50 2002 GMC Dura-Max Diesel 4WD Utility Truck Electric Good 7K 2012 73 1998 Dump Trailer Water Good NA 2013 74 1998 410E John Deere Backhoe Water Good NA 2013 26 1998 Intl DiggenDerrick 4WD Electric Good 23K 2013 11 1999 Intl Double Bucket Truck 4WD Electric Good 19K 2014 80 2001 Trackless Snowblower Electric Good NA 2015 84 Snowmobile Electric/Water Fair NA Retire 2005 71 Ingersol-Rand Air Compressor Water Good 2 Truck mounted generator Water Good 70 Enclosed Trailer Water Good 76 1994 Vactor Trailer Water Good 77 1987 Welding Trailer Water Good 78 1989 Backhoe Transport Trailer Water Good 16 1985 GMC Truck 4WD(portable generator) Water Fair 85 Snowmobile Trailer Electric/Water Fair 81 1993 Fleming Spool Trailer Electric Good 83 1972 HGDAV Spool Trailer Electric Fair 86 Wire Puller Electric Fair 87 Air Compressor Electric Fair 60