HomeMy WebLinkAbout4 Budget 2006 Agenda Item #
.0 i CKE l p rpii ,
i UtilityPublic . • • iE
Memorandum
To: Board of Directors
From: Peter Holzmeister
Date: February 10, 2006
Subject: Budget for 2006
Why this matter is before the Board: This matter involves adoption of a
District budget for 2006. Only the Board can adopt the budget.
History: The Board adopted electric and water rate increases at the last
meeting. The rates were less than needed to balance the draft budget as
presented in November. Therefore, budgeted expenditures needed to be
reduced and alternative revenues needed to be identified to bring the budget
back into balance.
The rates adopted by the Board require a two percent reduction in rate supported
expenditures. The Board directed staff to retain funding for Broadband planning,
but to finance it from a source other than rates. That would eliminate one
percent of the proposed rate increase. Staff was further directed to recommend
additional budget reductions to eliminate one additional percent of rate supported
expenditures.
New information: Attached for your review are three documents. The document
entitled Budget Revisions — 2006 lists that line item changes in the budget that
accomplish the Board's direction. A new budget document is attached that
contains the revisions. The attached resolution, if adopted by the Board, results
in adoption of the budget and accounting overheads.
Recommendation: I recommend that the Board adopt the resolution adopting
the budget for 2006 and associated accounting overhead rates.
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TELECOM ITEMS FUNDED THROUGH ALTERNATIVE SOURCES:
General Manager Electric Water Total
Offices Supplies and Expenses Broadband related expenses $2,000 $2,000 $4,000
AT&T-fiber lease 5,000 5,000 10,000
Outside Services Employed Aggregate Networks&Cebridge Lawsuit 131,500 131,500 263,000
General Advertising Expenses Broadband related expenses 5,000 5,000 10,000
Misc General Expenses Fiber to the Home Council 250 250 500
American Cable 100 100 200
Administrative Services
Outside Services Employed Broadband related expenses 2,500 2,500 5,000
Total Telecom Related Items $146,350 $146,350 $292,700
Transfer into budget-temporary loan
Storm Damage Fund ($146,350) ($146,350)
Reserve for Future Meters (146 350) (146,350)
$0 $0 $0
ITEMS DELETED FROM THE BUDGET
General Manager
Office Supplies and Expenses Plant Company 500 500 1,000
Misc General Expense Northwest Public Power 9,500 0 9,500
Administrative Services International City Management Association 100 100 200
Meter Reading Dues and Memberships 188 63 251
Customer Records and Collections Sierra Mail-EFT Letters 900 600 1,500
Office Supplies and Expenses Contract Services-DOT Trianing 500 500 1,000
Fed Ex/UPS/USPO 300 200 500
Meeting Expenses 120 80 200
Planning Services
Customer Assistance Expenses Cash Rebate Programs 33,600 5,711 39,311
Conservation(biomass&fuel cell) 30,000 0 30,000
Conservation(Energy conservation&education) 5,000 0 5,000
Outside Services Employed Marketing,not project related 15,000 0 15,000
Misc General Expense Home Show,other District activities,mist costs 1,273 0 1,273
Support Services
Transportation Expense Replace Unit#40 5,016 0 5,016
Electric Operations
Transportation Expense Trade in Unit#17 14,331 0 14,331
Power Supply
Professional Services UAMPS 60,000 0 60,000
Regulatory Commission Expens FERC Legal Expense 30,000 0 30,000
Miscellaneous General Operations SCADA System-Misc Expense 8,000 0 8,000
$214,328 $7,754 $222,082
TOTAL NEEDED TO DELETE AND TRANSFER IN $360,678 $154,104 $514,782
TR
UCKE
DONNER
Public I_ District
Re olutlon No. 2006 - XX
ADOPTING THE BUDGET AND OVERHEAD RATES FOR 2006
WHEREAS the Board of Directors and staff of the District participated in departmental workshops in the
months of August and September of 2005 to identify priority issues to be addressed by the District
during 2006 and to initiate budget preparation; and
WHEREAS District staff has prepared a draft budget for District operations and capital spending forthe
year 2006 taking into account the strategic plan issues; and
WHEREAS the Board of Directors of the District has participated in budget workshops and have
conducted a public hearing on the draft budget; and
NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner Public Utility
District as follows:
1. The draft budget for 2006 is hereby adopted
2. The following budget overhead rates are adopted
Overhead Item Overhead Rate
Labor Overhead 83.67%
Transportation Overhead 31.48%
Inventory Overhead 26.48%
Administrative Overhead 1.30%
Construction Overhead 43.56%
Non-inventory Material Overhead 25.00%
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on
the fifteenth of February 2006 by the following roll call vote:
AYES:
ABSTAIN:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President
ATTEST:
Peter L. Holzmeister, Clerk of the Board