HomeMy WebLinkAbout7 Public hearing on draft FY18 and FY19 Budgetenda Item #
PUBLIC HEARING
7
To: Board of Directors
From: Regina Wise
Date. November 01, 20171
Subject: This item involves holding a public hearing on the draft FY18 and
FY19 Budget.
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board traditionally holds a Public Hearing before adopting the District's budget
and overhead rates This public hearing ensures transparency for the District's budget
process.
2. HISTORY
District Code requires the District to prepare a two-year budget.
BUDGET PROCESS SCHEDULE
September 6
• Discuss the objectives, goals, assumptions, labor, and debt.
October 4
• Discuss the Purchase Power Plan; and
• Discuss the operating and capital budget for Electric and Water Utilities.
October 18
• Discuss the operating and capital budgets for supporting services;
• Review reserve funds;
• Review revenue, rates, fees, and charges;
• Present the Financial Master Plan; and
• Schedule the public hearing regarding the budget.
November 1 (Tonight)
• Review final Purchase Power Plan;
• Present a draft of the FY18 & FY19 budget; and
• Conduct a public hearing regarding the budget.
November 15
• Consider adoption of the FY18 & FY19 budget.
BUDGET ASSUMPTIONS
At the September 6, 2017 Board meeting, staff presented the following budget
assumptions:
• 3% inflation;
• No new debt;
• Budgeted electric revenue includes a 3% scheduled rate increase for FY18 &
FY19;
• Budgeted water rate revenue includes the maximum potential rate increases of
3% for FY18 & FY19;
• Labor cost increase of 3% budgeted for FY18 & FY19 for represented
employees per existing MOU; and
• Labor cost increase of 4.5% budgeted for FY18 and 3% for FY19 for
unrepresented employees.
3. NEW INFORMATION
The hearing was advertised in the Sierra Sun on October 25, 2017 for the November
11 2017 public hearing.
The full draft FY18 FY19 budget is included as Attachment 1 in Agenda Item #12.
4. FISCAL IMPACT
There is no material fiscal impact associated with this Public Hearing.
5. RECOMMENDATION
Conduct the public hearing and receive public comment.
Regina Wise
Interim Administrative Services Manaer
g
Michael D.
Holley
General Manager