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HomeMy WebLinkAbout11 Draft Budget Summary FY18 and FY19From: Regirna Wiae Date. November 01, 2017 Subject: Budget: FYI and FY19 Budget Summary 1. WHY THIS MATTER IS 13EF®RE THE BOAR® This item continues the process of the FY18 and FY19 budget. District Code requires the District to prepare atwo-year budget. Staff has presented multiple workshops in preparation of the draft FY18 and FY19 budget. The workshops have been ongoing starting with the September 6, 2017 board meeting. The only modification to the schedule at this time is that staff has removed the placeholder we had on the schedule for the final purchase power plan scheduled for November 1, 2017. Staff has no changes to report from the original purchase power plan presented on October 4, 2017. 3. NEW INI�C)RM�TI®N Dratt FV18 and FV19 budget: Attachment 1 is a draft of the proposed FYI and FY19 budget. It includes: © Executive Summary; O Part I District's Mission Statement and Goals; ® Part II Electric Utility's Operating, Repair and Maintenance Plan; ® Part III Water Utility's Operating, Repair and Maintenance Plan; 0 Part IV Electric and Water Capital Improvement Plans; and 0 Part V Appendices: o 1 Interdepartmental Rent o 2 Budgeted Positions by Department o 3 Labor Overhead o 4 Transportation Overhead o 5 Administrative Overhead o 6 Construction Overhead o 7 Electric Debt Schedule o 8 Water Debt Schedule o 9 Vehicle Replacement Schedule budget Highlights Electric utility: U Budgeted revenue for FY'18 and FYI includes a 3% rate increase; 0 Operating expenses for the Electric Utility are consistent with the FY17 budget increased expenses of 4% include wage increases and a significant increase in the annual commitment for tree trimming; and Capital expenditures in FY18 are 49% higher than FY17 due to the planned Meter Replacement Project and the District's Administration Building Remodel project in addition to routine system maintenance and Master Plan Projects. Nater Uti9ity: Budgeted rate revenue for FY18 and FY19 includes the maximum 3% rate increase; Miscellaneous Revenue for FY19 includes budgeted revenue associated with adding a cross connection fee; Operating and Maintenance expenses for the Water Utility are consistent with the FY17 budget with the exception of the following: • Staff budgeted for labor increases; ® Staff accounted for additional materials for meter maintenance; and • Budgeted headcount will decrease by two in this budget cycle due to attrition; and Capital expenditures continue focus on the water SCADA replacement project, meter installation project, pipeline replacement project, and pump station and well maintenance projects. o The reorganisation of Public Information completed in this budget cycle, Reallocating expenses from the Public General Management cost centers; and and Strategic Affairs expenses was Information and Conservation to Capital Improvement projects include a SCADA reliability project in FY19 to align resources with the SCADA replacement project. 4. FISCAL IMPACT The proposed FY18 and FY19 budget is consistent with the District's long-term goals. Staff is proposing a balanced budget for FY18 and FY19. 5. RECOMMENDATION Receive this report and provide comments to staff. Regina Wise Interim Administrative Services Manager Michael D. Holley General Manager Lo I�opc�0 <-M��ON �FOcGt� oor-M�ooO NN NNNN NM CV) CV) M�F — w w V � � O � _ W a = I w O w (=o Q) Liu co � v co O p O> v0+ O C= w wo o i O O� O> O Z�o =y�Z w cts i= O ,4 V co .v of r co co cow _ a�i O O LLI ®� Q � Q 4 i Q O N a��covooc)Qaw� oo�oLL,00 c�Q iwLLJ(n a � O O I I ® 0 a s N � aoON�ttOooO�N <t !F t! 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