HomeMy WebLinkAbout11 Mid Year Budget Financial Performanceenda Item #
To: Board of Directors
From: Regina Wise
Date. August 02, 2017
Subject: Review the District's Mid -Year Budget Financial Performance
1. WHY THIS MATTER IS BEFORE THE BOARD
This is a mid -year review with the Board of the financial results as of June 30, 2017.
2. HISTORY
The Board approved the FY17 Budget on November 18, 2015.
District Code requires a semiannual review of the budgeted revenue and expenditures
as compared to the year-to-date actual revenue and expenditures.
3. NEW INFORMATION
Overall, the District is on track with the FY17 budget with the exception of the
extraordinary expenses incurred during the extreme winter storms that occurred in
January and February 2017. Staff is working with Federal and State agencies to seek
recovery of funds for those events as presented in the July 19, 2017 Board meeting.
The process is still in preliminary stages with no guarantees for funding at this time so
staff has not included any estimates of recovery of funds in the below projections for
FY17 year end performance.
Attachment 1 is the budget comparison of the Electric Utility. Revenue is 60% of
Budget as of June 30th due to increased energy consumption during the extreme
winter. Revenue also includes $212K in joint pole revenue from 2016 being
processed in January 2017. Overall, revenues for the Electric Utility are projected to
end the year at 106% of budget. Mid -year expenses overall are 54% of budget and
expected to end the year at 104% of budget. The excess expenses incurred from the
winter storms ($1.2 million) are primarily tracked in the Operations line item which is
74% of budget at June 30, 2017. Capital projects for the first half of FY17 are 25% of
budget and projected to reach only 69% of budget at the end of the year primarily due
to the delay of the planned upgrade and replacement to the District's electric meters.
The District is expecting the funds budgeted for the Electric Meter Upgrade and
Replacement Project in FY16 and FY17 to be utilized in FY18 and FY19.
Attachment 2 is the budget comparison for the Water Utility. Revenue is 469/o of
budget and is projected to end the year at 96% of budget. Conservation activities
from customers from the recent drought experiences coupled with the extreme winter
and late melt of snow pack endured this year is resulting in lower consumption than
budgeted. Operating expenses are 49% of budget as of June 30, 2017 and projected
to end the year at 99% of budget. Like the Electric Utility this includes the excess
expenses incurred by the Water Utility ($74K) during the significant January and
February storms. Capital projects for the first half of FY17 are 14% of budget and
projected to end the year at 71 % of budget. The District expected this shortage of
expenditures in FY17 on Capital projects. November 2, 2016 staff reviewed this
timing of projects in the two year budget cycle with the Board, as funds scheduled for
projects in FY17 were utilized in FY16. The Water Utility remaining capital projects for
FY17 include the pipeline replacement project, the annual water meter installation
program continuation, and the well and pump station maintenance projects, in addition
to 3 vehicle replacements.
4. FISCAL IMPACT
There is no direct fiscal impact associated with this item.
5. RECOMMENDATION
Review this report and provide comments.
Regina Wise
Treasurer
Michael D. Holley
General Manager
Attachment 1
Truckee Donner Public Utility District
Electric Revenue
as of June 30, 2017
Projection
12 Mo YTD % of % of
Budget Actual Budget End of Yr Budget
Residential $ 11,704,400 $ 7,6313620 65% $ 129870,000 110%
Commercial %0719155 4,7943333 53% %2501000 102%
Interdept. Sales & Rent 117739479 7685748 43% 1,650,000 93%
Standby 23,171 - 0% 22,200 96%
Joint Pole 1605000 3819503 238% 400,000 250%
Misc Revenue 1665315 1639547 98% 166,000 100%
Total $ 2298989519 $ 1357399752 60% $ 24,358,200 106%
Electric Operating Expenses
as of June 30, 2017
12 Mo
Cost Center Budget
Board of Directors
General Management
Administrative Svcs.
Public Info. & Consrv.
Operations
IT/GIS
Building Maintenance
Purchase Power
GASB 68 Sidefund Pri
$ 127,900
498,51 V
1,426,771
1,300,947
4,358,927
631,492
495,753
12,425,649
le 408,800
YTD
Actual
47,540
231,197
704,280
4629841
3,231,404
3165161
2425566
6,1835931
204,400
of
Budget
37%
46%
49%
36%
74%
50%
Projection
%o
End of Yr Budget
$ 100,000
500,000
114209000
1,170,000
51410,000
6315000
4965000
1255009000
78%
100%
100
0
90
0
124
0
100
0
100
0
101
0
100
0
Total $ 21,6749750 $ 11,6245319 22,635,800 10410
Electric Capital Projects
as of June 30, 2017
12 Mo
Source of Funds Budget
YTD % of
Actual Budget
Projection
of
End of Yr Budget
Rates $ 216849338 $ 490,850 18%1 $ 2,0799995 77%
Capital Replacement (AMI) 1,112,820 78,754 7% 282,000 25%
Attachment 2
Truckee Donner Public Utility District
Water Revenue
as of June 30, 2017
Projection
12 Mo YTD % of % of
Budget Actual Budget End of Yr Budget
Residential $ 109727,529 $ 590509466 47% $ 10,080,000 94%
Commercial 19356,673 5909429 44% 11490,000 110%
Standby & Fire Protection 1451840 - 0% 1389000 95%
Misc Revenue 274,014 1419979 52% 2809000 102%
Total $ 127504,056 $ 597829874 46% $ 11,988,000 96%
Water Operating Expenses
as of June 30, 2017
Projection
12 Mo YTD % of % of
Cost Center Budget Actual Budget End of Yr Budget
Board of Directors $ 1279900 $ 47,024 37% $ 100,000 78%
General Management 4869659 2209599 45% 460,000 95%
Administrative Svcs. 193009598 5867943 45% 112409000 95%
Public Info. & Consrv. 2903129 1145334 39% 2609000 90%
Operations 496659701 293019021 49% 47670,000 100%
IT/GIS 5679904 3499140 61% 6405000 113%
Interdepartmental Rent 5619479 2809739 50% 5619479 100%
GASB 68 Sidefund Principal 2719897 1359948 50%1 2719897 100%
Total $ 812721267 $ 4,035,749 49% $ 852039376 99%
Water Capital Projects
as of June 30, 2017
Projection
12 Mo YTD % of % of
Source of Funds Budget Actual Budget End of Yr Budget
Rates $ 215803859 $ 4015844 16% $ 198749534 73%
Operating Reserve - - 0% - 0%
Vehicle Reserve 915398 3,529 4% 93,000 102%
Future Water Meters 2859933 2,247 1 % 135,000 47%
Total $ 259585190 $ 4075620 14% $ 27102,534 71 %