HomeMy WebLinkAbout2006 Budget Power Point Budget 2PO6
Board Presentation:
January 4, 2006
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\.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
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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
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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
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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
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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
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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
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' 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
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\-,- 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
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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
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