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HomeMy WebLinkAbout17 Budget Workshop #2 Staff ReportTRUCKEE DONNER Public Utility District MEETING DATE: October 6, 2021 TO: Board of Directors AGENDA ITEM #17 FROM: Michael R. Salmon, Chief Financial Officer SUBJECT: Budget 2022 & 2023 - Workshop number 2 - Discussion of Goals, Objectives, and Key Assumptions and Schedule Public Notice on 11 /3/2021 for the Budget 2022 and 2023. Brian C. Wright, General Manager RECOMMENDATION: a) Receive the information from this workshop item and provide strategic direction to staff regarding Budget 2022 & 2023 preparations. b) Schedule the Budge Public Hearing on 11/3/2021 for the Budget 2022 & 2023. DISCUSSION: For over a decade, the District has prepared the budget on a biennial basis. This is the 2nd workshop for the FY2022-23 budget development, utilizing the current budget, actual and forecast trends, as well as the strategic plan as the foundational basis. The current Board approved Budget 2022- 2023 workshops and approval schedule is as follows: • August 18, 2021 —Workshop #1 - Discussion of Goals, Objectives, and Key Assumptions; • October 6, 2021 (tonight) — Workshop #2 — Purchased Power Plan, Operating & Capital Budgets for Electric and Water Utilities, and Financial Master Plan drafts; Public Hearing Notice of 11/3/2021 Public Hearing on Budget 2022 & 2023 Approval • October 20, 2021 (5pm-7pm) — Workshop #3 — Operating and Capital Budgets for all support services, Revenue/Rates, Reserves & Financial Master Plan drafts • November 3, 2021 (6pm start) — Public Hearing and Action Item — Review and approval of Budget 2022 & 2023 Page 1 of 11 District's Mission The Mission of the Truckee Donner Public Utility District is to provide reliable, high quality utility and customer services while managing District resources in a safe, open, responsible, and environmentally sound manner at the lowest practical cost. Values of the District Safety — Safety is our way Safety is our first priority. We are committed to the health and safety of our employees, customers, and community through the continuous practice of prevention, education, and awareness. Communication — Send and receive Foster positive engagement by creating a strong communicative environment that includes; active listening, transparency, clear, concise, and the timely transmission of information, with empathy and respect. This also includes providing and receiving honest feedback. Integrity — Honest and ethical Highest quality service to the public and employees, utilizing honest and ethics as our base principles. Accountability — Own it A strong performing team with the obligation and willingness to accept responsibility for our actions, maintaining a sense of humility and inclusiveness. Timeliness — Meet our goals and commitments A highly effective agency and responsive organization meeting goals and expectations in a timely manner. Work Life Balance — Work hard, play hard We value every employee and foster a healthy work life balance culture, allowing employees to bring their best selves to work every day. Strategic Plan In May 2021, the Board adopted a Strategic Plan. The plan included four key initiatives as follows: ■ Undergrounding of Overhead Power lines ■ 100% Clean Renewable Energy ■ Local Clean Power Generation ■ Community Broadband Resources must be committed to these initiatives. Reference Documents The following links provide useful financial information: o August 18, 2021 — Workshop #1 - Discussion of Goals, Objectives, and Key Assumptions Workshop #1 starts on Page 54 of PDF o Strategic Plan 2021 — 2024 o 2020 Comprehensive Annual Financial Report o 2020 and 2021 Budget (Current Budget) Page 2 of 11 o District Code Title 3 Finance and Accounting Workshop #2 Agenda detail for current draft of 2022 & 2023 Budget is presented below: A) Purchased Power Budget B) Electric Utility Budget (Attachment 1) C) Water Utility Budget (Attachment 2) D) Personnel Budget (Attachment 4) E) Reserves Budget (Attachment 5) F) Financial Master Plan, 10 Years, 2022 to 2031 (Attachment 6) Capital Expenditure Summary and Detail, Electric and Water (Attachment 3) A) Purchased Power Budget • Represents approximately 53% of Electric Utility's operating expenses, therefore an important estimate in Budget • Demand is relatively consistent, readily estimated • Costs can be volatile • District has an Electric Rate Reserve policy (50% of annual power costs) with a balance of $6.4 million as of June 30, 2021 and is generally consistent with policy; but will need to be adjusted each year to keep pace with purchase power costs budgeted. Electric Utility Purchased Power Delivered (Energy Supply and Transmission); Includes $150,000 charged to Conservation Renewable Power: Annual Budgets and Last Twelve Months (LTM): Mega Watt Hours (MWh) Budget 2021 6/30/2 TM 8/31/2 TM Budget 2022 Budget 2023 Amount $13,065 $12,277 $12,886 $13,659 $14,132 Variance to Budget'22 $594 $1,382 $773 $473 % Variance 4.5% 11.2% 6.0% 3.3% MWh 168,590 171,509 171,792 172,651 173,515 Cost/MHh $77.50 $71.58 $75.01 $79.11 $81.45 The Budget 2022 amount of $13,659,000 represents a 4.5% increase over Budget 2021 and a 6.0% increase to LTM 8/31/2021. This latter LTM variance of $773K/6.0% is comprised of the following drivers: - $387K / 3.0% base inflation increase assumption - $ 64K / 0.5% customer growth demand impact - $322K / 2.5% contingency for cost volatility (based on recent trending) This 2.5% contingency is included due to the significant materiality of this budgeted line item and recent trending cost increases not fully factored in the LTM basis of calculation. Page 3 of 11 Utilizing the LTM 8/31/2021 cost of $12,886,000 as a starting point of calculation of Budget 2021, inherently includes the most recent MWh demand trend for the utility; which is not estimated to decline. The Budget 2022 MWh of 172,651 represents a 0.5% increase over the LTM MWh, and Budget 2023 MWh of 173,515 represents 0.5% growth to Budget 2022. Last four years MWh actual are: • 166,209 MWh in 2020 • 160,683 MWh in 2019 • 158,790 MWh in 2018 • 161,518 MWh in 2017 B) Electric Utility Budget The current draft of Budget 2022 (B22) and Budget 2023 (B23) is provided as Attachment 1. B22 notables in comparison to Budget 2021 (1321) are provided below. Operating Expenses Include the annual operating expenses association with providing and maintaining electrical service. Operating Expenses B22 of $26.8 million are $2.66m or 11 % greater than B21. The primary drivers of this cost increase are as follows ($ in thousands): 1) $594 - Purchased Power, as detail previously in section A) 2) $500 - Wildfire Defensible Space increase from $1.03 B21 to $1.53 B22 3) $234 - Rate of Pay Increase impact of assumption of 4.5%, based on Memorandum of Understanding (MOU) and Federal Bureau of Labor Statistics (BLS) related specifications. a. The BLS CPI-W for August was 4.9%, the MOU maximum cap is 5.0%. Next update and MOU specified CPI-W is the October figure. (includes overhead, across all departments) 4) $104 - Impact of Rate of Pay increases in 2020 & 2021 greater than Budget 2020 & 2021 5) $160 - Strategic Plan Initiatives funding to continue momentum (Dept. BoD) 6) $ 75 - other legal costs estimate (Dept. BoD) 7) $150 - additional FTE, 50% Electric, Human Resources Director (Dept. Gen.Mgmt) 8) $99 - additional FTE, 50% Electric, Safety & Risk Coordinator (Dept. Gen.Mgmt) 9) $94 - additional FTE, -50% Electric, Vehicle Mechanic (cost charged through Transportation Overhead, across all Depts.) 10)$87 - additional FTE, 50% Electric, Communications Specialist (Dept. Gen.Mgmt) 11)$30 - Grant application/writing professional services (Dept. Gen.Mgmt) 12)$28 - Laserfiche & Microimaging services (Dept. Gen.Mgmt) 13)$48 - safety programs, costs increases $23 and new SIDS subscription $25 (Dept. ELOps) 14)$30 - Avian program development (Dept. ELOps) 15)$15 - Survey services (Dept. Gen.Mgmt) 16) ($264) - transfer 1 FTE, Electrician to Water Operations (Dept. ELOps) 17) ($132) - drop'/2 FTE, Electrician 2nd half of 2022 (Dept. ELOps) 18)$64 - Compensation Study contingency, including overhead (across all departments) 19)$345 General Services organizational structure changes, add 2 FTEs to adequately service facilities throughout the District, this cost on Electric is recovered partially via Page 4 of 11 Rent charged to Water Division 20)$399 — net increase +3.6%, all other changes +/- (across all departments) Capital Expenditures reflect the long-term investment in capital infrastructure necessary to provide electric utility service to customers. Capital investment includes replacement of depreciated capital assets, as well as, expansion capital investment due to growth and changing needs of the utility. A 10 year capital improvement plan for the electric utility has been prepared and includes an 10 year total of $85.1 M or an average of $8.5M per year. The plan includes $6M for a new building located at the corporate yard for electric and the building is drafted in budget to be funded by the issuance of bonds, which spreads the cost (and rate impact) at a low interest rate over proposed 20 year debt service schedule. Capital expenditures for B22 of $16.75M and include the notable projects of ($ thousands): 1) $6,000 Proposed new building at corp yard (bond debt financed) 2) $3,000 District Office building modernization (water pays a portion of this thru rent) 3) $1,500 District Office drainage system and paving (water pays a portion of this thru rent) 4) $1,300 SCADA Reliability Improvement Project Phase 6 5) $ 520 Line Extensions and Upgrades 6) $ 444 Pole Replacements (q50) 7) $ 455 SRIP Pole Replacements (q33) 8) $ 390 Martis Valley Substation Rebuild (planning costs) ($1.4m in 2023 to complete) 9) $ 356 Glenshire Substation Rebuild (planning costs) ($2.1 m in 2023/2024 to complete) 10)$ 652 Information Technology projects, including $150k GIS/OMS software and $75k for Fleet GPS hard/software, and $125k for call recording/reporting hard/software 11)$ 497 Vehicles — five new/add equipment items and $39k to replace a dump trailer Capital expenditure details can be further referenced in Attachment 3. Reserves for the electric utility are established in District Code and are designed to ensure the financial stability and resilience. Reserves are part of all governmental and special districts and need to be appropriately funded over time in accordance District Code. Reserves are also utilized to balance spikes in annual expenditures planned or unplanned. In B22, vehicle reserves of $497,000 are utilized for vehicle purchases, capital reserves of $6.1 M are utilized to fund the $4.5M in District Office facility projects and $1.6M to fund other capital expenditures. A B22 funding (transfer to) vehicle reserves of $670,000 is planned to replenish the B22 expense, as well as improve the funding level based on the 10-year vehicle capital expenditure plan. A B22 funding (transfer to) the rate reserve fund of $326,000 is planned to increase the reserve balance to achieve policy balance of 50% of purchased power costs. The net result of General Fund for B22 is a positive $247,000, which increases the operating Page 5 of 11 reserve balance (District Policy is 50% of operating expenses). The operating reserve (General Fund) at the end of both B22 and B23 is +3% to policy target balance. Regarding General Fund Operating Reserve [District Code 3.01.01.04] — Staff will be recommending revisions to this policy during the budget process • Current District code wording for Electric is as follows: o Electric general fund should have a cash reserve equal to one half of the annual budgeted operating expenses, excluding depreciation • Recommended revision to the following: o Electric general fund should have a cash reserve equal to one half of the annual budgeted operating expenses, excluding depreciation and purchased power • Staff recommends this modification to the reserve policy due the existence of an Electric Rate Reserve. As the reserve policy is currently defined, including purchased power costs, Electric's operating reserve is relatively high, as 53% of the operating expenses are purchased power. This is deemed as duplicative or too conservative, as there is a separate Electric Rate Reserve. • With the change in policy definition, the amount in excess of goal for operating general fund would be transferred to the Electric Capital Reserve. The subject funds are rate generated and the capital reserve fund `bucket' is a Board designation. o $11,394 Operating general fund reserve balance 12/31/2020 0 (490) transfer to rate reserve in 2021 0 2,730 net result increase in balance, 2021 forecast results (driving in large part due to lower capital expenditures than budgeted, excluding transfers 0 (7,430) transfer to electric capital reserve in 2021 0 $ 6,204 Operating general fund reserve balance 12/31/2021 Forecast 0 $ 6,261 50% of Operating Expenses, excluding Deprecation & Purchased Power • $3,637 Capital reserve fund balance 12/31/2020 • 257 funding as budgeted in 2021 • 13 investment income • 0 use of capital reserve funds in 2021 (budget was $1.8m) • 7,430 transfer in from operating general fund in 2021 • $11,337 Capital reserve fund balance 12/31/2021 Forecast • $ 5,846 Policy average annual capital expenditures Capital reserve balance significantly higher than policy, due to lower capital expenditures in recent years, the draw down/use in B22 is $6.1 M Further information on reserves is provided in section E), attachment 5 and attachment 6. Revenues for the electric utility are primary generated from customer rates. The revenue requirement to balance the utility's budget is based on the cost of service result of various components including operating expenses, capital expenditures, reserve requirements, and debt service requirements. Budget 2022 operating revenues of $31.65M represent an increase over B21 of $3.97M or 13.7%. This 13.7% increase is comprised of the following component; customer growth 0.5%, 4.7% current demand trend change from B21 expectations, and rate increase of 8.5%. Page 6 of 11 The Budget 2022 includes an 8.5% average rate increase and Budget 2023 includes an average rate increase of 6.0%. An independent consultant is concurrently preparing a cost of service analysis for the District, with results expected in November. Post the noted planned increases, the District electric utility rates will remain competitive in the region and below average for California market. C) Water Utility Budget The current draft of Budget 2022 (1322) and Budget 2023 (1323) is provided as Attachment 2. B22 notables in comparison to Budget 2021 (B21) are provided below. Operating Expenses include the annual operating expenses association with providing water service and maintaining water service assets including wells, tanks, pump stations and pipelines. Operating Expenses B22 of $10.92 million are $1.13m or 12% greater than B21. The primary drivers of this cost increase are as follows ($ in thousands): 1) $ 234 — Rate of Pay Increase impact of assumption of 4.5%, based on Memorandum of Understanding (MOU) and Federal Bureau of Labor Statistics (BLS) related specifications. a. The BLS CPI-W for August was 4.9%, the MOU maximum cap is 5.0%. Next update and MOU specified CPI-W is the October figure. (Includes overhead, across all departments) 2) $104 — Impact of Rate of Pay increases in 2020 & 2021 greater than Budget 2020 & 2021 3) $ 75 — other legal costs estimate (Dept. BoD) 4) $150 — additional FTE, 50% Water, Human Resources Director (Dept. Gen.Mgmt) 5) $ 99 — additional FTE, 50% Water, Risk & Compliance Coordinator (Dept. Gen.Mgmt) 6) $ 87 — additional FTE, 50% Water, Communications Specialist (Dept. Gen.Mgmt) 7) $ 30 — Grant application/writing professional services (Dept. Gen.Mgmt), successful grant fund applications will more than offset the additional administrative costs 8) $ 27 — Laserfiche & Micro imaging services (Dept. Gen.Mgmt) 9) $ 15 — Survey services (Dept. Gen.Mgmt) 10)$ 94 — additional FTE, —50% Water, Vehicle Mechanic (cost charged through Transportation Overhead, across all departments) 11)$ 264 — transfer 1 FTE, Electric to Water Operations (Dept. Water Ops) 12)$ 177 — additional FTE, Maintenance Program Lead (Dept. Water Ops) 13)$ 64 — Compensation Study contingency, including overhead (across all departments) 14)($ 292) — net decrease of 3.0%, all other changes +/- (across all departments) Capital Expenditures reflect the long-term investment in capital infrastructure necessary to provide water utility service to customers. Capital investment includes replacement of depreciated capital assets, as well as, expansion capital investment due to growth and changing needs of the utility. A 10 year capital improvement plan for the water utility has been prepared and includes a 10 year total of $90.7M or an average of $9.1 M per year. The plan includes $15M of projects funded by the issuance of bonds, which spreads the cost (and rate impact) at a low interest Page 7 of 11 rate over a proposed 25 year debt service schedule at $960K range per year. This new debt service is at a level that replaces the current debt service that falls off by a similar amount. Capital expenditures for B22 of $15.28M and include the notable projects of ($ thousands): 1) $1,000 new water tank, facility fees portion funded 2) $3,000 new water tank, new debt financed 3) $2,721 pump station replacement, Martiswoods, new debt financed 4) $2,384 pipeline replacement, new debt financed 5) $1,965 new pipeline. new debt financed 6) $1,345 pump station rehabilitations 7) $ 949 water tank rehabilitations 8) $ 463 Information Technology projects, including $150k GIS/OMS software and $75k for Fleet GPS hard/software, and $125k for call recording/reporting hard/software 9) $ 644 Vehicles — four truck replacements and two trailer replacement Capital expenditure details can be further referenced in Attachment 3. Reserves for the water utility are established in District Code and are designed to ensure the financial stability and resilience. Reserves are part of all governmental and special districts and need to be appropriately funded over time in accordance District Code. Reserves are also utilized to balance spikes in annual expenditures planned or unplanned. In B22, water vehicle reserves of $644,000 are utilized for vehicle purchases and capital reserves, of which $0 are utilized in 2022 (cap reserve balance is only $1.OM). A B22 funding (transfer to) vehicle reserves of $240,000 is planned to replenish the B22 spend, as well as, improve the funding level based on the 10-year vehicle capital expenditure plan. A B22 funding (transfer to) the capital reserve fund of $620,000 is planned to increase the significantly underfunded capital reserve balance. The net result of General Fund for B22 is a positive $3,719, which increases the operating reserve balance, which has a policy of 50% of operating expenses. The operating reserve (General Fund) is at the end of both B22 and B23 is in the 80% range (short 20%) to policy target balance. Further information on reserves is provided in section E), attachment 5 and attachment 6 Revenues for the water utility are primary generated from customer rates. The revenue requirement to balance the utility's budget is based on the cost of service result of various components including operating expenses, capital expenditures, reserve requirements, and debt service requirements. Budget 2022 operating revenues of $16.43M represent an increase over B21 of $2.23M or 15.7%. This 15.7% increase is comprised of the following component; customer growth 0.5%, 6.0% rate increase in 2021 greater than B21 expectation, 0.2% current demand trend change from B21 expectations, and rate increase of 9.0% (as approved in December 2020). The Budget 2022 includes a 9.0% average rate increase and Budget 2023 includes an average rate increase of 8.0%. An independent consultant prepared a cost of service Page 8 of 11 analysis/rate recommendation in 2020 and the Board adopted the recommendation in included in B22/B23 and the Financial Master Plan. Post the planned increases, the District water utility rates will remain competitive in the region. D) Personnel • The District has reviewed the organizational structure numerous times over last 18-24 months and has developed several recommend changes to align the structure with the evolving landscape of public utility operations and management, consistent with the District's Mission, Values, and Strategic Plan. • Changes approved in 2020 and 2021 that differ from Budget, and impact 2022 and 2023 Budget: o Additions ■ Human Resources Manager (B22 step up/promotion to Director) ■ Vehicle Mechanic ■ Accounting Specialist Lead o Eliminations ■ Financial Analyst o Modifications or re -alignments ■ Administrative Services Director to Chief Financial Officer (no change in FTEs) ■ Electric reorg to three line crews and eliminate service crew, add Troubleman position and second substation lineman/Inspector (no change in FTEs) o All of above; + 2 FTE's net impact on Budget 2022/2023 compared to Budget 2021 • Potential changes proposed for Budget 2022 (and continuing in 2023) o ADD (+6 FTEs) ■ General Administration — Communications Analyst/Tech ■ General Administration —Risk & Compliance Coordinator ■ Water Ops — Maintenance Program Technician ■ Water Ops — Water SCADA Pump and Motor Controls Technician ■ General Services Manager ■ Facilities Maintenance Lead o Change (-.5 FTE in 2022, -1.0 FTE in 2023) ■ Electric Ops — change 2 Apprentice Lineman positions to Journeyman Lineman positions (no FTE impact) ■ Electric Ops — eliminate one Electrician position 2023 (1/2 FTE impact) ■ Transfer 1 Electrician position from Electric Ops to Water Ops (no FTE impact) • Net FTEs 0 73.0 Budget 2021 0 80.5 Budget 2022 0 80.0 Budget 2023 FTEs by Department and other information on personnel is provided in attachment 4. Page 9 of 11 E) Reserves Electric Utility has the following reserve accounts: General Fund Rate Reserve Capital Reserve Vehicle Reserve Facility Fees Deferred Liability (The General Fund is commonly referred to as the `operating reserve') Electric's General Fund and Rate Reserve are generally sufficiently funded at policy levels, both at six months or 50% of annual operating expenses (excluding depreciation and purchased power) and purchased power costs, respectively. Electric Capital Reserve has a target balance of one year's annual capital expenditures and the balance has built up over the target balance. In essence, over the last 18-24 months planned operating rate funded capital projects have been delayed/deferred, primarily due to the pandemic. The funds were accumulated for capital expenditures, and are now planned in B22 to be expended. The B22 electric capital reserve beginning balance of $11.3M is drawn down by $6.1 M by end of B22, as a significant and appropriate planned use of the reserve funds. Water Utility has the following reserve accounts: General Fund Capital Reserve Vehicle Reserve Facility Fees Deferred Liability (The General Fund is commonly referred to as the `operating reserve'.) Water Utility General Fund is in the 80% range to policy level of six months or 50% of annual operating expenses (excluding depreciation). The funding level is improved over time to the policy goal in the Financial Master Plan, discussed in next section. Water's Capital Reserve has a target balance of one year's annual capital expenditures and the current balance is significantly under the target balance of one year's annual capital expenditures. The B22 water capital reserve beginning balance of $1.OM has a funding in B22 of 620K and then in B23 a use of 650k. The funding level is improved over time to the policy goal in the Financial Master Plan, discussed in next section. Attachment 5 provides additional reserves information for B22 and B23. The Financial Master Plan, attachment 6, provides reserve information for 10 years. Page 10 of 11 F) Financial Master Plan The Financial Master Plan (FMP) is a tool to help the Board and staff understand how the proposed budget impacts long-term goals. The FMP includes revenues and expenditures the current budget cycle years, as well as, the following eight years, for a 10 year horizon view of the financial position, in particular reserve balances, for the District. Further, the FMP is reviewed during the budget cycle to ensure that the proposed budget is consistent with long-term goals. The FMP makes assumptions on customer growth and inflation. Further, the FMP incorporates the 10 year capital improvement plans of the utilities. The key measure of financial stability for the District in the FMP is reserve balances. Electric Utility achieves the policy target balances most years in the plan. Water Utility achieves the policy target balances only in the final year 2031, due primarily to the current low reserve balances compared to policy targets and a $9.1 m/year average capital improvement plan expenditure level. Attachment 6, Financial Master Plan, provides FMP draft Electric and Water utilities key summary pages of revenue, expenditures, and reserve information for the subject 10 year period. FISCAL IMPACT: There is no direct fiscal impact associated with this workshop item. ATTACHMENTS: A. Electric Utility Budget Summary B. Water Utility Budget Summary C. Capital Expenditure Summary and Detail, Electric and Water D. Personnel FTE Budget E. Reserves Budget F. Financial Master Plan, 10 Years, 2022 to 2031 Page 11 of 11 Attachment 6 Truckee Donner Public Utility District TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) Financial Master Plan Summary - Assumptions FY22 through FY31 * Customer Growth - Electric - 2022 & 2023 0.5%, thereafter 1.0% per year Water - 2022 & 2023 0.5%, thereafter 0.8% per year [2015 to 2020 Growth Rate - Electric 1.2% Water 0.8%] * Purchased Power - 3% increase for inflation + 1.0% for customer growth impact; 4.0% Total / year * All Other Costs - Electric - 2022 as detail planned, 2023 as detail planned, thereafter 3.5% per year inflation Water - 2022 as detail planned, 2023 as detail planned, thereafter 3.5% per year inflation * Capital Expenditures - refer to Attachment 3, Capital Expenditure 10 year Plan, Electric and Water * New Debt - Electric $61VI Water $15M; both bond issuances in 2022 Pension Obligation Bonds not in current Budget/FMP draft - POB's estimated to have small net impact on cash flow * In 2022 the rate funded water debt will be cut in half due to the refunding portion of the former 2006 COP debt and the Prop 55 water system improvement debt will be paid off * Interest earned projected at 0.30%22, 0.50%23, gradually increasing to 1.0% in 2027 and thereafter * AB32 cap and trade auction proceeds are projected to fall from approxamately $1.4m per year in 2020 to $750,000 in 2021, and stabilize at $350,000 thereafter Attachment 6 - FMP - Page 1 of 5 9/29/2021 3:06 PM I:\BUDGET\CYB\Central\Financial Master Plan Assumptions TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) Attachment 6 Financial Master Plan Summary FY22 through FY31 (in thousands) ELECTRIC FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 Operating Cash Flow Operating revenue $ 31,654 $ 33,919 $ 34,941 $ 35,994 $ 37,078 $ 38,194 $ 39,344 $ 40,529 $ 41,749 $ 43,006 Operating expenses (26,824) (27,758) (28,799) (29,880) (31,001) (32,164) (33,371) (34,624) (35,925) (37,275) Other revenue/(expenses) (105) (214) (196) (173) (144) (113) (96) (80) (69) (59) Net Income $ 4,725 $ 5,947 $ 5,946 $ 5,941 $ 5,933 $ 5,917 $ 5,877 $ 5,825 $ 5,755 $ 5,672 Transfer from/(to)funds 6,599 1,277 1,973 (942) (777) (1,525) (1,615) 236 424 588 Debt principal payments (323) (201) (210) (218) (227) (236) (245) (255) (265) (276) Debt proceeds (new debt) - $6,000 6,000 - - - - - - - - - Capital projects (16,754) (6,355) (6,984) (3,808) (4,447) (3,495) (3,274) (5,798) (5,891) (5,957) Change in Operating Cash $ 247 $ 668 $ 726 $ 974 $ 482 $ 661 $ 743 $ 9 $ 23 $ 28 Cash & Reserve Balances Operating Cash Balance (GenFd) $ 6,451 $ 7,120 $ 7,847 $ 8,821 $ 9,302 $ 9,964 $ 10,706 $ 10,715 $ 10,737 $ 10,765 Rate Reserve Balance 6,774 7,011 7,291 7,582 7,885 8,200 8,527 8,867 9,221 9,589 Capital Reserve Balance 5,271 4,332 2,853 3,872 4,903 6,452 8,016 7,997 7,677 7,303 Capital Vehicle Reserve Balance 374 433 491 471 294 358 496 384 366 226 Deferred Liability 2,100 2,108 2,119 2,133 2,150 2,172 2,194 2,216 2,238 2,260 Facility Fee Reserve Balance 204 386 18 148 279 418 565 720 883 1,054 Cash & Reserve Balances $ 21,174 $ 21,390 $ 20,619 $ 23,027 $ 24,813 $ 27,564 $ 30,504 $ 30,899 $ 31,122 $ 31,197 Change to Proposed FY22 & FY23 0.0% 0.0% Proposed rate chanqe 8.5% 6.5% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Attachment 6 - FMP - Page 2 of 5 9/29/2021 3:06 PM I:\BUDGET\CYB\Central\Financial Master Plan Electric View1 $34,000 $32,000 $30,000 $28,000 $26,000 $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 — $8,000 — $6,000 — $4,000 — $2,000 — FY22 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) Financial Master Plan Summary FY22 through FY31 (in thousands) Electric Projected Cash & Reserve Balance Cash & Reserve Balances Goal FY23 FY24 FY25 FY26 FY27 FY28 FY29 Attachment 6 FY30 FY31 Attachment 6 - FMP - Page 3 of 5 9/29/2021 3:06 PM I:\BUDGET\CYB\Central\Financial Master Plan Electric View1 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) Attachment 6 Financial Master Plan Summary FY22 through FY31 (in thousands) WATER FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 Operating Cash Flow Operating revenue $ 16,434 $ 17,784 $ 19,324 $ 20,810 $ 22,413 $ 24,141 $ 25,551 $ 27,020 $ 28,306 $ 29,373 Operating expenses (10,922) (11,486) (11,959) (12,367) (12,789) (13,226) (13,678) (14,145) (14,628) (15,127) Other revenue and expenses (693) (959) (913) (864) (815) (759) (709) (661) (607) (550) Net income $ 4,819 $ 5,339 $ 6,452 $ 7,579 $ 8,809 $ 10,156 $ 11,164 $ 12,214 $ 13,071 $ 13,696 Transfers from/(to) funds 1,243 1,016 124 1,429 77 (1,092) (559) (23) (1,702) (3,678) Debt principal payments (846) (1,015) (1,055) (1,100) (1,140) (1,186) (1,233) (1,276) (1,324) (1,373) Debt proceeds (new debt) - $15,000 10,070 3,451 1,479 - - - - - - - Capital expenditures (15,284) (8,784) (6,990) (8,074) (7,736) (7,592) (8,791) (10,238) (9,219) (8,021) Change in Operating Cash $ 2 $ 7 $ 10 $ (166) $ 10 $ 286 $ 581 $ 677 $ 826 $ 624 Cash & Reserve Balances Operating Cash Balance (GenFd) $ 4,710 $ 4,717 $ 4,727 $ 4,561 $ 4,571 $ 4,856 $ 5,437 $ 6,114 $ 6,940 $ 7,564 Capital Reserve Balance 1,640 996 1,211 119 395 1,899 2,918 3,447 5,567 9,822 Vehicle Reserve Balance 110 207 280 358 415 415 382 314 329 202 Deferred Liability 107 107 108 108 108 109 109 109 110 110 Facility Fee Balance 1,427 1,539 1,518 1,497 1,480 1,482 1,502 1,539 1,598 1,679 Cash & Reserve Balances $ 7,994 $ 7,566 $ 7,844 $ 6,643 $ 6,969 $ 8,761 $ 10,348 $ 11,523 $ 14,544 $ 19,377 Change to Proposed FY22 & FY23 0.0% 0.0% Proposed rate chanqe 8.9% 7.9% 8.0% 7.0% 7.0% 7.0% 5.1 % 5.0% 4.0% 3.0% Attachment 6 - FMP - Page 4 of 5 9/29/2021 3:06 PM I:\BUDGET\CYB\Central\Financial Master Plan Water View1 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) Financial Master Plan Summary FY22 through FY31 (in thousands) Water Projected Cash & Reserve Balance Cash & Reserve Balances Goal Attachment 6 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 Attachment 6 - FMP - Page 5 of 5 9/29/2021 3:06 PM I:\BUDGET\CYB\Central\Financial Master Plan Water View1 ATTACHMENT 5 ELECTRIC UTILITY (A) General Fund (B) Rate Reserve (C) Capital Reserve (D) Vehicle Reserve (E) Facility Fees (F) Deferred Liability Total Reserves (G) AB32 Cap&Trade WATER UTILITY (H) General Fund (1) Operating Reserve (J) Capital Reserve (K) Vehicle Reserve (L) Facility Fees (M) Deferred Liability Total Reserves TDPUD Budget FY2O22 and FY2023 (Draft 10/6/2021) Financial Master Plan - RESERVE BALANCES - Actual I Forecast I Goal Actual Actual Forecast Forecast BUDGET BUDGET BUDGET BUDGET 12/31/2019 12/31/2020 2021 12/31/2021 2022 12/31/2022 2023 12/31/2023 2023 Balance Balance Change Balance Change Balance Change Balance Goal $ 9,965,241 $ 11,393,734 $ (5,190,000) $ 6,203,734 $ 247,494 $ 6,451,228 $ 669,232 $ 7,120,460 '. $ 6,888,000 5,870,208 5,938,528 490,000 6,428,528 345,000 6,773,528 237,000 7,010,528 6,991,000 2,426,319 3,636,649 7,700,000 11,336,649 (6,065,990) 5,270,659 (938,917) 4,331,742 74% 5,846,000 402,741 626,347 (453,412) 172,935 201,052 373,987 58,518 432,505 :' . 400,000 918,914 748,126 (739,000) 9,126 194,727 203,854 182,535 386,389 2,053,044 2,085,918 8,456 2,094,374 5,626 2,100,000 8,000 2,108,000 2,122,000 $ 21,636,467 $ 24,429,302 1 $ 1,816,044 $ 26,245,346 $ (5,072,090) $ 21,173,256 1 $ 216,369 $ 21,389,624 $ 22,247,000 1,538,617 1,606,959 (694,000) 912,959 (647,000) 265,959 (199,000) 66,959 NA $ 2,582,902 $ 3,085,600 $ 1,620,447 $ 4,706,047 $ 3,719 $ 4,709,766 $ 7,036 $ 4,716,802 82% $ 5,743,000 1,599,909 1,618,447 (1,618,447) - - - - - NA - - 1,016,721 1,016,721 623,050 1,639,771 (643,441) 996330 7,800,000 - 197,987 286,341 484,328 (374,464) 109,864 96,771 206:636 200,000 1,430,706 2,024,309 253,821 2,278,130 (851,174) 1,426,956 112,035 1,538,991 104,927 106,226 411 106,637 320 106,957 321 107,278 849.000 $ 5,718,444 $ 7,032,569 1 $ 1,559,294 $ 8,591,863 1 $ (598,548) $ 7,993,315 1 $ (427,277) $ 7,566,037 $ 14,592,000 (A) DC 3.01.04 - Electric General Fund cash reserve equal to one half of the annual budgeted operating expenses, excluding depreciation and purchased power* * the addition of the words to exclude 'purchased power' is a recommended 2021 change to District Code wording for Electric's General Fund cash reserve goals (B) DC 3.01.04 -Electric Rate Reserve minimum cash reserve equal to six months of the budgeted cost of purchased power (C) DC 3.01.05 -Electric Capital Reserve goal equal to the average annual budget for capital replacement (D) no specific DC for Electric Vehicle Reserve goal, staff recommends a goal of $200,000 minimum balance to enable ability to address unplannned / unexpected needs. (E) Electric Facility Fees managed by facility fee restrictions for use. (F) DC 3.01.04 - Electric Deferred Liability reserve intent is to provide reserves for unfunded liabilities such as pension costs; reserve goal established by Board annually. (G) AB32 Cap & Trade funds are restricted; use of funds lowers rates revenue requirement. $1.4 million used in 2020 and 2021. Auction sales in 2021 $700k, 2022 $350k, impacting 2022 and 2023 use accordingly. Thereafer, estimate stablize at $350,000 range each year in FMP. (H) DC 3.01.04 - Water General Fund cash reserve equal to one half of the annual budgeted operating expenses, excluding depreciation ( I ) The Operating Reserve was not in District Code, this reserve was consolidated into General Fund reserve in 2021 (J) DC 3.01.05 -Water Capital Reserve goal equal to the average annual budget for capital replacement (K) no specific DC for Water Vehicle Reserve goal, staff recommends a goal of $200,000 minimum balance to enable ability to address unplannned / unexpected needs. (L) Water Facility Fees managed by facility fee restrictions for use. (M) DC 3.01.04 - Water Deferred Liability reserve intent is to provide reserves for unfunded liabilities such as pension costs; reserve goal established by Board annually. District Code (DC) Attachment 5 - Reserves - Page 1 of 1 (A) (B) (C) (D) (E) (F) (G) (H) (J) (K) (L) (M) 9/29/2021 2:30 PM I:\BUDGET\CYB\Central\Financial Master Plan Reserves TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) BUDGETED POSITIONS BY HOME DEPARTMENT Full Time Equivalents (FTE) Payroll Dollars (base pay, including paid time off) Before any allocations to other Departments, Capital, and or Overhead(s) Budget FTE and Dollars I POSITIONS by DEPARTMENT 2021 2022 2023 ELECTRIC OPERATIONS 1.00 1.00 1.00 Electric Utility Director 1.00 1.00 1.00 Electric Engineering Manager 2.00 2.00 2.00 Electric Engineer 1.00 1.00 1.00 Electric Operations Manager 1.00 1.00 1.00 Assistant Electric Operations Manager 2.00 3.00 3.00 Foreman, Power Services 1.00 Foreman, Service Crew 1.00 1.00 1.00 Foreman, Electricians 3.00 1.50 1.00 Electrician/Meter Technician (1 move to Water, 1 eliminate beg.H2'22) 1.00 1.00 1.00 Meter Read/Utility/WMP 1.00 2.00 2.00 Substation Lineman/Inspector 1.00 1.00 Troubleman/Mark&Loc. 1.00 Lead Lineman 7.00 9.00 9.00 Journeyman Linemen 3.00 Apprentice Linemen Standby/Overtime Compensation Study Factor 26.00 24.50 24.00 FTE Total (1.50) (0.50) FTE Change $ 3,777,435 $ 3,882,468 $ 3,933,726 Payroll Dollars ELECTRIC OPERATIONS $ 105,032 $ 51,259 Change, Dollars 2.8% 1.3% Change, Percentage WATER OPERATIONS 1.00 1.00 1.00 Water Utility Director 1.00 1.00 1.00 Water System Engineer 1.00 1.00 1.00 Water Operations Manager 1.00 1.00 1.00 Water SR Quality Inspector 2.00 2.00 2.00 Water Foremen 2.00 2.00 2.00 Water Leadmen 5.00 6.00 6.00 Water Service Technicians 2.00 1.00 1.00 Water Service Technicians - in Training 1.00 1.00 Water Helper I (two part-time, summer) (non -benefited) 1.00 1.00 P&M Controls Electrician (position from Electric Ops) 1.00 1.00 Maintenance Program Lead Standby/Overtime Compensation Study Factor 15.00 18.00 18.00 FTE Total 3.00 - FTE Change $ 1,893,141 $ 2,388,686 $ 2,457,912 Payroll Dollars WATER OPERATIONS $ 495,545 $ 69,226 Change, Dollars Attachment 4 - Personnel - Page 1 of 4 26.2% 2.9% Change, Percentage 9/29/2021 1:39 PM Appendices APPENDIX 2 APPENDIX 2 Page 1 of 4 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) BUDGETED POSITIONS BY HOME DEPARTMENT Full Time Equivalents (FTE) Payroll Dollars (base pay, including paid time off) Before any allocations to other Departments, Capital, and or Overhead(s) Budget FTE and Dollars I POSITIONS by DEPARTMENT GENERAL MANAGEMENT 1.00 1.00 1.00 General Manager 1.00 1.00 1.00 District Clerk / Executive Assistant 1.00 1.00 1.00 Public Information & Strategic Affairs Director 1.00 1.00 1.00 Contract Administrator 1.00 1.00 1.00 Record Coordinator/Tech 1.00 1.00 1.00 Administrative Tech - 1.00 1.00 Communications Coordinator 1.00 1.00 Human Resources Director 1.00 1.00 Safety and Risk Coordinator Compensation Study Factor 6.00 9.00 3.00 $ 793,139 $ 1,192,853 $ $ 399,713 $ 50.4% 9.00 FTE Total - FTE Change 1,213,977 Payroll Dollars 21,124 Change, Dollars 1.8% Change, Percentage 1.00 - - - 1.00 1.00 1.00 1.00 1.00 1.00 - - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 - - 4.00 4.00 4.00 17.00 16.00 (1.00) $ 1,601,193 $ 1,510,602 $ $ (90,591) $ -5.7% GENERAL MANAGEMENT ADMINISTRATIVE SERVICES Business Operations Manager, HR & Risk Manager Chief Financial Officer Finance & Accounting Manager Senior Accountant/Accounting Analyst General Accounting Supervisor Work Order Accounting Supervisor Work Order Clerk Accounting Specialist Lead Acg Specialist - Payroll and Accounts Payable Clerk Buyer/Clerk Warehouse/Utility Worker Customer Services Manager Customer Billing and CSR Supervisor Billing Clerk Conservation Specialist (position moved to Conservation Dept for B'22' Customer Service Representatives (4) Overtime Compensation Studv Factor 16.00 FTE Total - FTE Change 1,555,846 Payroll Dollars 45,244 Change, Dollars 3.0% Change, Percentage ADMINISTRATIVE SERVICES Attachment 4 - Personnel - Page 2 of 4 9/29/2021 1:39 PM Appendices APPENDIX 2 APPENDIX 2 Page 2 of 4 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) BUDGETED POSITIONS BY HOME DEPARTMENT Full Time Equivalents (FTE) Payroll Dollars (base pay, including paid time off) Before any allocations to other Departments, Capital, and or Overhead(s) Budget FTE and Dollars POSITIONS by DEPARTMENT MAINTENANCE SERVICES 1.00 1.00 Maintenance Services Manager 1.00 1.00 Facilities Maintenance Foreman 1.00 1.00 1.00 Facilities Maintenance Coordinator 1.00 1.00 1.00 Vehicle Mechanic Foreman 1.00 1.00 Vehicle Mechanic Standby/Overtime Compensation Studv Factor 2.00 5.00 5.00 FTE Total 3.00 - FTE Change $ 214,918 $ 546,596 $ 564,327 Payroll Dollars MAINTENANCE SERVICES $ 331,678 $ 17,731 Change, Dollars 154.3% 3.2% Change, Percentage CONSERVATION 1.00 1.00 1.00 Program Manager, CSR & Conservation - 1.00 1.00 Conservation Specialist (positiong moved from AdminSvcs Dept for B'2, - - Overtime - - - Compensation Study Factor 1.00 2.00 2.00 FTE Total 1.00 - FTE Change $ 114,598 $ 204,943 $ 209,351 Payroll Dollars CONSERVATION $ 90,346 $ 4,408 Change, Dollars 78.8% 2.2% Change, Percentage IT/GIS 1.00 1.00 1.00 IT Director/CIO 1.00 1.00 1.00 IT/SCADA Engineer 1.00 1.00 1.00 Network & System Administrator 1.00 1.00 1.00 GIS Coordinator 1.00 1.00 1.00 Data Analyst & Administrator 1.00 1.00 1.00 IT Security & Applications Manager Compensation Study Factor 6.00 6.00 6.00 FTE Total - - FTE Change $ 870,559 $ 908,532 $ 917,446 Payroll Dollars IT/GIS $ 37,973 $ 8,914 Change, Dollars 4.4% 1.0% Change, Percentage Attachment 4 - Personnel - Page 3 of 4 9/29/2021 1:39 PM Appendices APPENDIX 2 APPENDIX 2 Page 3 of 4 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) BUDGETED POSITIONS BY HOME DEPARTMENT Full Time Equivalents (FTE) Payroll Dollars (base pay, including paid time off) Before any allocations to other Departments, Capital, and or Overhead(s) Budget FTE and Dollars I POSITIONS by DEPARTMENT DISTRICT TOTAL (excluding Board of Directors) 73.00 80.50 80.00 FTE Total 7.50 (0.50) FTE Change DISTRICT TOTAL (excluding 9,264,983 $ 10,634,680 $ 10,852,585 Payroll Dollars $ 1,369,6971 $ 217,905 Change, Dollars Board of Directors) 14.8% 2.0% Change, Percentage Attachment 4 - Personnel - Page 4 of 4 9/29/2021 1:39 PM Appendices APPENDIX 2 APPENDIX 2 Page 4 of 4 ELECTRIC Division, by Funding Source Electric Department Expenditures: Facility Fees Operating (Rates) Operating (Rates) New Debt Truckee Donner Public Utility District TDPUD Capital Budget 2022 & 2023 and Forecast 2024-2031 (Draft 10/6/2021) Capital Expenditures Summary 2022 2023 2024 0 0 500,000 9,605,250 4,828,066 5,782,041 6,000,000 0 0 2025 2026 0 0 2,586,097 3,569,106 0 0 2027 0 2,703,242 0 2028 2029 2030 20311 10 YR TOTALS 0 0 0 0 2,790,832 4,981,306 5,137,767 5,036,995 0 0 0 0 500,000 47,020,702 6,000,000 0 0 subtotal (see subschedule for projects) 15,605,250 4,828,066 6,282,041 2,586,097 3,569,106 2,703,242 2,790,832 4,981,306 5,137,767 5,036,995 53,520,702 Information Technology projects 651,900 762,400 345,400 769,400 249,650 401,400 157,650 214,650 236,115 259,727 4,048,292 funded from Operating (Rates) (see subschedule for projects) Vehicle Reserves Expenditures 497,193 763,164 356,143 452,159 628,608 390,133 325,724 602,411 517,435 659,784 5,192,754 funded from Vehicle Reserves (via Rates) (see subschedule for projects) Capital Expenditures, subtotal 16,754,343 6,353,630 6,983,584 3,807,656 4,447,364 3,494,775 3,274,206 5,798,367 5,891,317 5,956,506 62,761,748 Contributed Capital projects 1,947,946 2,004,324 2,064,454 2,126,387 2,190,179 2,255,884 2,323,561 2,393,268 2,465,066 2,539,018 22,310,086 funded by transaction customers Electric Division Total $ 18,702,289 $ 8,357,954 $ 9,048,038 $ 5,934,043 $ 6,637,543 $ 5,750,659 $ 5,597,767 $ 8,191,635 $ 8,356,383 $ 8,495,523 $ 85,071,834 WATER Division by Funding Source 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Water Department Expenditures: Facility Fees 1,000,000 0 0 0 0 0 0 0 0 0 Operating (Rates) 3,106,405 4,894,590 5,065,616 7,458,277 7,261,623 7,085,981 8,297,897 9,642,512 8,678,586 7,299,025 Operating (Rates) New Debt 10,070,167 3,450,673 1,479,160 0 0 0 0 0 0 0 10 YR TOTALS 1,000,000 68,790,512 15,000,000 0 0 subtotal (see subschedule for projects) $ 14,176,572 $ 8,345,263 $ 6,544,776 $ 7,458,277 $ 7,261,623 $ 7,085,981 $ 8,297,897 $ 9,642,512 $ 8,678,586 $ 7,299,025 1 $ 84,790,512 Information Technology projects 462,900 281,150 255,400 421,900 249,650 213,900 157,650 214,650 236,115 259,727 2,753,042 funded from Operating (Rates) (see subschedule for projects) Vehicle Reserves Expenditures 644,306 157,720 189,546 193,335 224,727 292,600 335,683 380,499 304,074 461,903 3,184,393 funded from Vehicle Reserves (via Rates) (see subschedule for projects) Capital Expenditures, subtotal 15,283,778 8,784,133 6,989,722 8,073,512 7,736,000 7,592,481 8,791,230 10,237,661 9,218,775 8,020,655 90,727,947 Contributed Capital projects 0 0 0 0 0 0 0 0 0 0 0 funded by transaction customers Water Division Total $ 15,283,778 $ 8,784,133 $ 6,989,722 $ 8,073,512 $ 7,736,000 $ 7,592,481 $ 8,791,230 $ 10,237,661 $ 9,218,775 $ 8,020,655 $ 90,727,947 Attachment 3 Capital Expenditures - Page 1 of 5 9/28/20219:09 PM I:\BUDGET\CYB\Capital\Capital Plan for Budget 10yr Summary row Funding ref Source Project Name 1 OR Conduit & Boxes - BWO 2 OR Line Extensions & Upgrades 3 OR Pole replacements (FY21-50, FY22-39, FY23-45, FY24-60, FY25-50) 4 FF Truckee Substation Rebuild 5 OR Martis Vallev Substation Rebuild 6 OR Glenshire Substation Construction ('24 less $500k FF) 7 ORD Electric Operations Building (Bond $8M in FY22, design in FY21) 8 OR District Office Bldg Modernization 9 OR District Office Drainage System & Paving .Ti ...................._ELF.Deployment...................................................................................................................................... OR System Hardening Projects 12 OR SRIP Pale Replacements (FY21-33, FY22-40, FY23-20, FY24-0, FY25-20) 13 OR SCADA Reliability Improvement Project (FY22-Phase 6, FY24- Phase 7) (includes Fiber build -out) 14 OR Master Plan - Northwoods Rebuild (FY21-27, FY22-25, FY23-20, FY24-30, FY25-30) 15 OR _Joint _UG_Projects_with _Town ofTruckee 16 OR Summit Drive OH Project 17 OR row 17 not used 18 OR Master Plan - 1 R30 Replacement (DL-3) 19 OR Master Plan - R35 Replacement (MV-2) 20 OR ............................................................................................................................................................................................................................. . Additional SPEAR Reclosers 21 Master Plan - Project DL-02 (DL-3) (4 poles) 22 OR Master Plan - Project DL-01 (DL-3) (15 poles) 23 OR Master Plan - 1 R20 Replacement (DL-3) 24 OR Master Plan - Project TR-02 (TR-5) (42 poles) 25 OR 26 OR _1R50_Replacement(DL-3) Master Plan - Project TR-01 (TR-1) (8 poles) 27 OR Master Plan - Project TD-04 (TD-2) (24 poles) 28 OR METER REPLACEMENT beginning in 2029 29 OR row 29 not used 30 OR row 30 not used ........................................................................................................................................................................................................................... 31 . District Building HVAC Improvements 32 OR Fleet Scan Tool 33 OR Substation Phasing Equipment 34 OR Substation Grounds (Safety Equip) 35 OR Electric Distribution Grounds (Safety Equip) ........ 36 OR Metering test equipment 37 OR Drone Inspecton equipment 38 OR row 38 not used 39 FF Glenshire Substation Construction -Facility Fees portion 40 OR row 40 not used Truckee Donner Public Utility District TDPUD Capital Budget 2022 & 2023 and Forecast 2024-2031 (Draft 10/6/2021) ELECTRIC Department 2022 2023 2024 i I 2025 1 2026 I $ 13,520 $ 14,061 $ 14,623 $ 15,208 $ 15,816 $ 520,000 540,800 562,432 584,929 608,326 443,834 527,480 724,405 621,781 512,348 389,750 1,405,049 356,433 6,000,000 3,000,000 1,500,000 318575......... 201,042 455,214 1,344,150 284,509 205,000 49,173 30,900 9 ................ 44,21 63,000 30,000 50,000 20,000 30,000 50,000 367,126 328,132 ...................... 207,074 234,435 230,746 234,435 211,386 31,827 160,432 50,648 234,435 50,000 1, fbb,U3b 213,286 1,505,231 362,203 217,727 265,615 52,167 79,317 500,000 ....................... 219,684 248,712 373,069 226,275 512,348 950,658 512,348 2027 16449 $ 632:660 527,718 233,063 527,718 527,718 2028 2029 2030 2031 17,107 $ 17,791 $ 18503 $ 19,243 657,966 684,285 711:656 740,122 543,550 559,856 576,652 593,951 240,055 247,257 254,674 543,550 559,856 576,652 543,550 1 559,856 1 576,652 593,951 593,951 267.777 2,100, 000 1 2,163, 000 1 2,228,000 ELECTRIC DEPARTMENT TOTAL: $ 15,605,250 $ 4,828,066 $ 6,282,041 $ 2,586,097 $ 3,569,106 $ 2,703,242 $ 2,790,832 $ 4,981,306 $ 5,137,767 $ 5,036,995 Total planned pole replacements: 1 120 I 120 120 I 124 I 120 I 120 I 120 120 0 120 by Funding Source Totals 10 YR TOTALS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 FF Facility Fees 500,000 0 0 500,000 0 0 0 0 0 0 0 OR Operating (Rates) 47,020,702 9,605,250 4,828,066 5,782,041 2,586,097 3,569,106 2,703,242 2,790,832 4,981,306 5,137,767 5,036,995 ORD Operating (Rates) Debt Issuance 6,000,000 6,000,000 0 0 0 0 0 0 0 0 0 CR Capital Reserves 0 0 0 0 0 0 0 0 0 0 0 OS Other Sources 0 0 0 0 0 0 0 0 0 0 0 ELECTRIC DEPARTMENT TOTAL: $ 53,520,702 $ 15,605,250 $ 4,828,066 $ 6,282,041 $ 2,586,097 $ 3,569,106 $ 2,703,242 $ 2,790,832 $ 4,981,306 $ 5,137,767 $ 5,036,995 Note - this schedule excludes Contributed Capital, IT, and Vehicle projects. Attachment 3 Capital Expenditures - Page 2 of 5 Truckee Donner Public Utility District TDPUD Capital Budget 2022 & 2023 and Forecast 2024-2031 (Draft 10/6/2021) WATER Department row Funding 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 ref Source Project Type 1 OR New PRV Station $ 65,892 s $ 181,803 s $ $ $ $ $ $ $ $ - 2 OR New Pipeline 116,586 i 337,862 i 1,734,361 i 1,707,086 i 618,449 i 1,195,103 i 1,504,222 i 1,242,508 i 1,292,208 3 OR Pipeline Replacement 1,945,603 2,708,813 2,817,166 2,929,853 3,047,047 3,168,928 3,295,686 3,427,513 4 OR Pump Station Replacement 507,195 383,015 2,182,880 5 OR Pump Station Rehabilitation 1,345,344 s 1,259,242 s 1,309,612 s 1,361,996 s 1,416,476 s 1,473,135 s 1,149,045 s 1,242,807 s 1,292,520 6 OR PRV Rehabilitation 93,600 97,344 202,476 78,965 82,124 85,409 88,825 92,378 96,074 99,916 7 OR Well Rehabilitation 327,473 169,671 117,638 122,344 127,238 579,357 80,278 83,490 86,829 90,302 8 OR Well Replacement 9 OR Tank Rehabilitation 949,096 s 879,990 s 915,189 s 951,797 s 989,869 s 1,029,464 s 1,070,642 s 876,979 s 912,058 s 948,541 10 OR New Tank 11 OR Water SCADA 100,000 s 108,160 s 112,486 s 116,986 s 121,665 s 126,532 s 131,593 s 136,857 s 142,331 s 148,024 12 OR Generator 1,358,280 s 13 OR Facilities metering impv i 200,000 216,320 14 OR Equipment test bench 25,000 15 OR Pipe Modification fire flow 32,013 76,112 16 OR Service Modification sery pressure i 92,737 167,671 i 17 OR Meter MTLls placeholder 1,535,363 1,596,778 1,660,293 18 19 ORD New Pipeline 1,965,141 s 1,348,940 s 1,479,160 s 20 ORD Pipeline Replacement 2,384,025 1,668,432 21 ORD New Tank 3,000,000 s 22 ORD Well Replacement 433,301 s 23 ORD Pump Station Replacement 2,721,000 24 25 FF New Tank 1,000,000 s 26 27 28 29 30 WATER DEPARTMENT TOTAL: i $ 14,176,571 $ 8,345,263 $ 6,544,775 $ 7,458,277 $ 7,261,623 $ 7,085,981 $ 8,297,897 $ 9,642,512 $ 8,678,586 $ 7,299,025 91 by Funding Source Totals 10 YR TOTALS 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 FF Facility Fees 1,000,000 1,000,000 i OR Operating (Rates) 68,790,513 i 3,106,405 4,894,590 5,065,616 7,458,277 7,261,623 7,085,981 i 8,297,897 9,642,512 8,678,586 7,299,025 ORD Operating (Rates) Debt Issuance 15,000,000 10,070,167 3,450,673 i 1,479,160 i CR 0i OS 0i WATER DEPARTMENT TOTAL: $ 84,790,513 $ 14,176,572 $ 8,345,263 $ 6,544,776 $ 7,458,277 $ 7,261,623 $ 7,085,981 $ 8,297,897 $ 9,642,512 $ 8,678,586 $ 7,299,025 Note - this schedule excludes Contributed Capital, 1T and Vehicle projects. Attachment 3 Capital Expenditures - Page 3 of 5 TDPUD Capital Budget 2022 & 2023 and Forei Capital Projects Expenditure Plan - Informatic Project Name Split E W Buildout Completion 100% 0% Hardware Refresh 50% 50% Enterprise Software - 50% 50% GIS/OMS Enterprise Software 50% 50% Agenda Management 50% 50% Software Fleet GPS mobile units and 50% 50% software Call Recording/Reporting 50% 50% System :ast 2024-2031 (Draft 10/6/2021) in Technology 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 189,000 481,250 90,000 347,500 - 187,500 - - - - 110,800 312,300 510,800 343,800 499,300 427,800 315,300 429,300 472,230 519,453 300,000 - - - - - - - - - 100,000 250,000 - 500,000 - - - - - - 15,000 - - - - - - - - - 150,000 250,000 Annual Totals 1,114,800 1,043,550 600,800 1,191,300 499,300 615,300 315,300 429,300 472,230 519,453 Electric Total 651,900 762,400 345,400 769,400 249,650 401,400 157,650 214,650 236,115 259,727 Water Total 462,900 281,150 255,400 421,900 249,650 213,900 157,650 214,650 236,115 259,727 10 year total 6,801,333 Electric 4,048,292 (X) this item included in Electric Department - SCADA build -out phases Water 2,753,042 Attachment 3 Capital Expenditures - Page 4 of 5 9/28/2021 9:09 PM I:\BUDGET\CYB\Capital\Capital Plan for Budget IT Page 4 of 5 TDPUD Capital Budget 2022 & 2023 and Forecast 2024-2031 (Draft 10/6/2021) Capital Projects Expenditure Plan - Vehicles Project Name 2022 2023 2024 E Electric fleet 497,193 763,164 356,143 W Water fleet 644,306 157,720 189,546 Total 2025 2026 2027 2028 2029 2030 2031 452,159 628,608 390,133 325,724 602,411 517,435 659,784 193,335 224,727 292,600 335,683 380,499 304,074 461,903 1 $ 1,141,499 $ 920,884 $ 545,689 $ 645,494 $ 853,335 $ 682,733 $ 661,407 $ 982,910 $ 821,509 $ 1,121,687 Electric Division 497,193 763,164 356,143 452,159 628,608 390,133 325,724 602,411 517,435 659,784 Water Division 644,306 157,720 189,546 193,335 224,727 292,600 335,683 380,499 304,074 461,903 10 year total 8,377,147 Eletric Fleet includes support pool vehicles. Electric 5,192,754 Water 3,184,393 Current fleet count, 81 There are 6 additions in proposed vehicle reserves capital plan, highlighted below. Current average age of fleet, 9.9 years old. For 10-year plan, the average age at replacement year is 16.1 Future years include 2.0% inflation factor applied to current replacement cost estimates. 11 Ford F-550 (11yo) 11 Ford F-550(11yo) 11 Ford F-550(11yo) 06 Chevy Silverado 3500 (18yo) New Pole Trailer New Electric Excavator and attachments New IT Truck New Line Crew UTV New 3500 Foreman Truck 89 Backhoe Transport Trailer(33yo) 04 Dump Trailer(18yo) 06 Halmark Leak Trailer(16yo) 2022 Electrtic Water Electrtic Water 149,602 149,602 149,602 - 101,647 13 Ford Escape(10yo) 56,290 - 44,166 - 06 Chevy Silverado 3500 (17yo) 152,633 - 143,540 - New Substation/Inspector Truck 103,704 - 66,249 - New Digger Derrick 450,537 - 88,332 - 08 John Deer 410 J (15yo) - 157,720 116,261 - 38,645 2023 763,164 157,720 38,645 - - 55,208 497,193 644,306 Attachment 3 Capital Expenditures - Page 5 of 5 9/28/2021 9:09 PM I:\BUDGET\CYB\Capital\Capital Plan for Budget Vehicles TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) WATER OPERATIONS REVENUE STATEMENT OPERATING BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET BUDGET $BUDGET %BUDGET REVENUE FY21 ENDING 6.2021 FY22 CHANGE CHANGE FY23 CHANGE CHANGE Residential Sales $12,094,808 $12,509,773 $14,169,117 $2,074,309 17°% $15,379,160 $1,210,043 9°% Commercial Sales 1,661,919 1,705,402 1,818,345 156,426 9°% 1,973,631 155,286 9°% Misc. Operating Revenue 252,578 274,820 272,382 19,804 8°% 258,669 (13,713) -5°% Miscellaneous Rents 76,651 110,800 69,261 (7,390) -10°% 69,608 347 1°% Standby Revenue 119,582 114,800 104,742 (14,840) -12°% 102,647 (2,095) -2°% TOTAL OPERATING REVENUE $14,205,538 $14,715,595 $16,433,847 $2,228,309 16% $17,783,715 1,349,868 8% Interest Income (General Fund only) 103,000 69,865 14,000 (89,000) -86% 19,000 5,000 36% Transfer in from Facilities Fees & Reserve - Debt - 2006 COP 356,179 356,179 1,358,008 1,001,829 281% 358,672 (999,336) 0% Transfer in from DLAD surcharge for debt payment 800,852 800,852 0 (800,852) -100% 0 0 - Transfer in from DLAD billing surcharge - 2006 COPs 96,216 98,504 99,060 2,844 3% 97,837 (1,223) -1% Transfer in from Capital Reserve Fund 0 0 0 650,000 650,000 - Transfer in from Vehicle Reserve Fund 270,000 270,000 644,306 374,306 139% 157,720 (486,586) 100% Transfer in from overhead to cover CalPers sidefund interest payment 13,022 13,022 2,663 (10,359) 100% 0 (2,663) -100% Transfer in from Prop 55 reserve for final debt payment 342,000 342,000 0 (342,000) 100% 0 0 - TOTAL WATER REVENUE & TRANSFERS $16,186,807 $16,666,017 $18,551,884 $2,365,078 15% $19,066,944 $515,060 3% Attachment 2 - Water - Page 1 of 2 9/29/2021 1:22 PM I:\BUDGET\CYB\Central\Summary Budget Sheets Op Rev-Wtr TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) SUMMARY OF WATER REVENUES AND EXPENSES BUDGET I PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET 1 $ BUDGET I % BUDGET RECAP REVENUES LESS EXPENSES I FY21 ENDING 6.2021 FY22 CHANGE I CHANGE FY23 CHANGE CHANGE WATER REVENUES & TRANSFERS $16,186,807 $169666,017 $18,551,884 $2,365,078 15% $19,066,944 $5159060 3% LESS EXPENSES Board of Directors 166,110 223,089 283,747 117,637 71% 2179295 (66,452) -23% General Management 798,223 946,873 15400,126 6019903 75% 15449,941 49,815 4% Administrative Services 1,429,038 1,431,346 15383,501 (45,537) -3% 15432,912 49,411 4% Conservation 104,846 585291 80,887 (23,959) -23% 93,945 13,058 16% Water Operations 5,991,979 5,780,211 65425,148 433,169 7% 65853,011 427,863 7% Information Technology (IT) 767,900 7325002 858,121 909221 12% 8669351 8,230 1% Interdepartmental Rent (Appendix 1) 536,536 521,688 490,824 (45,712) -9% 572,076 81,252 17% TOTAL OPERATING EXPENSES $9,794,633 $9,693,501 $10,9225354 $15127,721 12% $11,485,531 $5639177 5% Debt Service (Appendix IX) 3,087,521 3,215,064 1,552,201 (15535,320) -50% 1,993,917 4419716 28% Transfer to Vehicle Reserve Fund 2795950 279,950 240,000 (39,950) -14% 247,000 79000 3% Transfer to Capital Reserve 1,015,747 1,015,747 620,000 (395,747) -39% 0 (620,000) -100% TOTAL EXPENSES & TRANSFERS $149177,851 $149204,262 $13,3345555 ($843,296) -6% $13,726,448 $3919893 3% NET AVAILABLE FOR CAPITAL $2,008,956 $2,461,756 $5,217,330 $3,2089374 160% $5,3409496 $1239167 2% Capital Expenditures (2,008,956) (3,100,000) (159283,778) (139274,822) 661% (8,784,133) 6,499,645 -43% Bond Debt Proceeds Utilized - - 10,070,167 10,0709167 - 3,450,673 (6,619,494) -66% Net Change in General Fund $ - $ (638,244) $ 3,719 3,719 - $ 7,036 3,318 89% Budget 2022 and 2023, the Increase in General Fund is to improve operating reserve (general fund reserve) based on District Code defined goal. Attachment 2 - Water - Page 2 of 2 9/29/2021 1:22 PM I:\BUDGET\CYB\Central\Summary Budget Sheets Rev-Exp Sum-Wtr TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) ELECTRIC OPERATIONS REVENUE STATEMENT BUDGET $ BUDGET % BUDGET OPERATING BUDGET PRIOR 12 MOS REVENUE FY21 ENDING 6.2021 FY22 CHANGE I CHANGE Residential Sales $14,705,571 $15,822,797 $17,523,806 $2,818,235 19% Commercial Sales 10,677,560 10,692,605 11,855,692 1,178,132 11% Interdepartmental Sales 1,308,775 1,241,201 1,373,234 64,459 5% Miscellaneous Operating Revenue 170,578 117,614 115,785 (54,793) -32% Standby Revenue 18,225 18,670 17,000 (1,225) -7% Pole Replacements and Contacts 267,266 477,231 277,231 9,965 4% Interdepartmental Rent 536,536 521,688 490,824 (45,712) -9% TOTAL OPERATING REVENUE $27,684,511 $28,891,806 $31,653,572 $3,969,061 14% Interest Income (General Fund Only) 388,712 175,111 19,000 (369,712) -95% Transfer in from Vehicle Reserve Fund 450,000 450,000 497,193 47,193 10% Transfer in from Capital Reserve Fund 1,772,658 0 6,100,000 4,327,342 244% Transfer in from Facility Fees Fund 72,428 72,428 0 (72,428) -100% Transfer in from overhead to cover CalPers sidefund interest payment 19,532 19,532 3,994 (15,538) -80% Transfer in from AB32 Reserve Fund 1,400,000 1,400,000 1,000,000 (400,000) -29% BUDGET $BUDGET % BUDGET FY23 CHANGE CHANGE $18,756,168 $1,232,362 7% 12,689,444 833,752 7% 1,489,959 116,725 9% 116,364 579 1% 16,600 (400) -2% 278,617 1,386 0% 572,076 81,252 17% $33,919,228 $2,265,656 7% 26,000 7,000 37% 763,164 265,971 53% 960,000 (5,140,000) -84% 0 0 - 0 (3,994) -100% 550,000 (450,000) -45% TOTAL ELECTRIC REVENUE & TRANSFERS $31,787,842 $31,008,878 $39,273,759 $7,485,917 241/6 $36,218,392 ($3,055,367) -8% 9/29/2021 Attachment 1 Electric - Page 1 of 2 TDPUD Budget FY2022 and FY2023 (Draft 10/6/2021) SUMMARY OF ELECTRIC REVENUES AND EXPENSES BUDGET PRIOR 12 MOS BUDGET $ BUDGET % BUDGET BUDGET $ BUDGET % BUDGET RECAP REVENUES LESS EXPENSES FY21 ENDING 6.2021 FY22 CHANGE CHANGE FY23 CHANGE CHANGE ELECTRIC REVENUES & TRANSFERS $31,787,842 $31,008,878 $39,273,759 $7,485,917 24% $36,218,392 ($3,055,367) -8% LESS EXPENSES: Board of Directors 166,110 224,019 443,745 277,635 167% 377,289 (66,456) -15% General Management 902,536 1,030,575 1,501,269 598,733 66% 1,574,895 73,626 5% Administrative Services 1,417,122 1,503,496 1,414,263 (2,859) 0% 1,459,057 44,794 3% Conservation 817,370 463,553 883,580 66,210 8% 915,902 32,322 4% Electric Operations 5,979,295 7,096,277 6,645,504 666,209 11% 6,973,868 328,364 5% Information Technology (IT) 1,529,658 1,206,919 1,633,393 103,735 7% 1,659,323 25,930 2% Purchased Power 12,915,399 12,206,025 13,509,000 593,601 5% 13,982,000 473,000 3.5% Building Maintenance (cost 100% distributed) 440,391 329,696 792,774 352,383 80% 815,705 22,931 3% TOTAL OPERATING EXPENSES $27,758,039 $934,511 3% $24,167,881 $24,060,561 $26,823,528 $2,655,647 11% Debt Service (Appendix Vlll) 642,933 632,409 447,394 (195,539) -30% 441,491 (5,903) -1% Transfer to Vehicle Reserve 214,556 214,556 675,000 460,444 215% 786,000 111,000 16% Transfer to Electric Rate Reserve Fund 0 0 326,000 326,000 0% 210,000 (116,000) -36% Transfer to Electric Capital Fund 257,486 257,486 0 (257,486) -100% 0 0 0% TOTAL EXPENSES & TRANSFERS 25,282,856 25,165,012 28,271,922 2,989,066 12% 29,195,530 923,608 3% NET AVAILABLE FOR CAPITAL $6,504,986 $5,843,866 $11,001,837 $4,496,851 69% $7,022,862 ($3,978,975) -36% Capital Expenditures (6,504,986) (5,300,000) (16,754,343) (10,249,357) 158% (6,353,630) 10,400,713 -62% Bond Debt Proceeds - - 6,000,000 6,000,000 - - (6,000,000) -100% Net Change in General Fund $ - $ 543,866 $ 247,494 247,494 - $ 669,232 421,738 170% Budget 2022 and 2023, the Increase in General Fund is to improve operating reserve (general fund reserve) based on District Code defined goal. 9/29/2021 Attachment 1 Electric - Page 2 of 2