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HomeMy WebLinkAbout2006 Budget Power Point Budget 2PO6 Board Presentation: January 4, 2006 1 r4 \.Budget for 2006 • This is a public hearing • No decision has been made • No decision will be made tonight • We began working on the budget in August of 2005 with a series of pre-budget workshops . In September and October staff began to prepare the draft budget for 2006 • The draft budget was presented to the Board of Directors in November • The Board then held a second series of workshops to discuss the draft budget for 2006 2 e • How the budget _is Put Together • Department heads prepare preliminary estimates • There is an ongoing established District organization that forms the basis for the budget • We identify problems that we propose to solve • We prepare a budget comprised of two documents One documents is detailed Other document is higher level 3 VI/hat is the focus of the budget for 2006? • Maintain the organization structure so we can serve customers — Water and electric • Replace leaking water lines — Water • Replace fuse cutouts to reduce power outages caused by birds and animals — Electric 4 What is the focus of) the budget for 2006? - continued • Tree trimming to reduce storm related outages — Electric • Add two positions — Water and electric Seasonal warehouse to deal with high summer construction activity Full-time vehicle mechanic replacing part-time contract mechanic 5 - -------- ....... inn What is the focus of toe budget for 2006? = continued • New after hours answering service to provide improved communication with customers during service outages — Mostly electric • Increase electric system cash reserve in anticipation of new power supply contract • Increase water system cash reserve in anticipation of needed replacement of older system components 6 __ R R ! o i Budget Proposes Rate Increases • 5% Electric operations rate increase • 2% Electric reserves • 7% Total electric rate increase • 1 % Rate increase raises $ 180,339 • 7% Raises $ 1 ,262 ,373 • 5% Electric connection charge increase 7 ' Budget Proposes Rat: Increases • 5% Water operations rate increase • 2% Water reserves • 7% Total water rate increase • 1 % Raises $77 ,052 • 7% Raises $539,364 • 5% Water connection charge increase 8 Y1 ® a P R \-,- Rate impact on customers • Average residential usage of electricity is 750 KWH per month • Electric bill would increase by $6 .40 per month • Typical residential water customer would see an increase of $3 . 58 per month 9 I Rate impact are- Customers • If a customer is a typical customer using District electric and water service , the monthly bill would increase as follows: Current Rate Proposed Rate Electric $91 .34 $97.74 Water 51 . 18 54.76 Total $ 142 .52 $ 152 .50 7% change 10 -- _ - ----.......