HomeMy WebLinkAbout14 Mid Year FY18 Budgetenda Item #
To: Board of Directors
From: Regina Wise
Date. August 01, 2018
Subject: Review the District's Mid -Year FY18 Budget to Actual Financial
Performance
14
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, 2018.
2. HISTORY
The Board approved the FY18 Budget on November 15, 2017. District code requires
a semiannual review of the budgeted revenue and expenditures as compared to the
year-to-date actual revenue and expenditures.
The budget to actual report is a consolidated report of actual activity for revenues,
operational expenses, and capital improvement projects funded by rates and
reserves. The current reporting excludes accrual entries in revenues, depreciation,
amortization, and revenue and expenses associated with contributed capital projects.
3. NEW INFORMATION
Attachment 1 is the budget comparison for the Electric Utility. Overall revenue is 54%
of Budget as of June 30, 2018. Residential consumption was strong for the first
quarter of 2018 during the winter weather and revenues include $119K of joint pole
revenue that billed in January for work completed in 2017. Overall, revenues for the
Electric Utility are projected to end the year at 103% of budget. Mid -year expenses
overall are tracking pretty close to budget coming in just 3% under budget and are
projected to come in at 99% of budget at the end of the year. The Electric Utility's
capital projects for the first half of the FY18 are 47% of budget and projected to be
99% of budget at the end of the year. Capital projects for the Electric Utility in FY18
include planned Various District Projects, Distribution Replacement and Improvement
Projects, Electric Master Plan Projects, the Electric Meter Replacement Project (2,000
new meters have been installed to date), and the Customer Service Entrance
Improvement project. Lastly, the Electric Utility will receive four fleet replacements in
FY18; three service trucks and one bucket truck. Current projections with increased
revenues and expense tracking at this time have the Electric Utility projected to
exceed budget expectations with revenues in excess of expenses of just under $1 M at
year end.
Attachment 2 is the budget comparison for the Water Utility. Revenue is 3% under
budget as of June 30, 2018 and is projected to be at 99% of budget at year end.
Consistent with last year's water usage, irrigation activities did not resume as early as
we had projected due to later melting of the snow pack in the spring. Operating
expenses are 49% of budget as of June 30, 2018 and are projected to end the year at
100% of budget. The Water Utility capital projects are at 33% of budget at June 30,
2018 and are projected to be 103% of budget at year end. FY18 capital projects for
the Water Utility include the Pipeline Replacement Project, New Meter Installations,
Water SCADA replacement continuation, two emergency generators, and well and
pump station maintenance projects. Current projections of revenues and expenses
compared to budget are on track for the Water Utility for FY18. End of year
projections currently show the Water Utility to have a small amount of expenses in
excess of revenues by just under $100K.
Staff will be enhancing the format that includes additional information that
incorporates standard financial formatting in the future. This will allow the District to
use financial and operating ratios and benchmarking resources utilized by other
utilities. However, for the purpose of this mid -year review we have kept the format
historically used.
4. FISCAL IMPACT
This financial review of actual to budget activity and year end projections for FY18 are
for the Board's review of the District's current financial performance.
5. RECOMMENDATION
Review this report and provide comments.
Lisa Hall
Administrative Services Director
Michael D.
Holley
General Manager
Attachment 1
Truckee Donner Public utility District
2018 Mid -Year Budget Comparison and End of Year Projections
Electric Revenue
as of June 30, 2018
Projection
12 Mo YTD % of % of
Budget Actual Budget End of Yr Budget
Residential $ 12,981,651 $ 793093897 56% $ 1356305000 105%
Commercial 99535,733 41880,594 51% 955405000 100%
Interdept. Sales & Rent 177259547 7623074 44% 196705000 97%
Standby 219530 - 0% 2%100 93%
Joint Pole and Pole Attachments 2629000 2065311 79% 3005000 115%
Misc Revenue 1659561 97,913 59% 1659000 100%
Total $ 24,692,022 $ 13,256,788 54% $ 2553259100 103%
Electric Operating Expenses
as of June 30, 2018
Projection
12 Mo YTD % of % of
Cost Center Budget Actual Budget End of Yr Budget
Board of Directors $ 150,075 $ 493638 33% $ 130,000 87%
General Management 7639970 3909242 51% 7709000 101 %
Administrative Svcs. 1,356,174 6843994 51% 193609000 100%
Public Info. & Consrv. 8997255 228,071 25% 8109000 90%
Operations 4,5509246 2,475,119 54% 591303000 113%
IT/GIS 6619181 3559147 54% 6905000 104%
Building Maintenance 4989109 194,310 39% 4709000 94%
Purchase Power 1296929528 59868,866 46% 12,0601000 95%
Total $ 219571,538 $ 109246,386 47% $ 2154209000 99%
Electric Capital Projects
as of June 30, 2018
Projection
12 Mo YTD % of % of
Source of Funds Budget Actual Budget End of Yr Budget
Rates $ 396039406 $ 195605239 43% $ 356385818 101 %
Capital Replacement (AMI) 29065,253 192855951 62% 199685708 95%
Vehicle Reserve 4223346 37,364 9% 4169835 99%
Total $ 610919005 $ 258839554 47% $ 6,0249361 99%
Attachment 2
Truckee Donner Public utility District
2018 Mid -Year Budget Comparison and End of Year Projections
Water Revenue
as of June 30, 2018
Projection
12 Mo YTD % of % of
Budget Actual Budget End of Yr Budget
Residential $ 10,7119730 $ 55204,747 49% $ 10,5005000 98%
Commercial 135769712 5985844 38% 1,580,000 100%
Standby & Fire Protection 1335440 - 0% 123,490 93%
Misc Revenue 246,291 153,240 62% 3009000 122%
Total $ 1256685173 $ 599569831 47% $ 1295035490 99%
Water Operating Expenses
as of June 30, 2018
Projection
12 Mo YTD % of % of
Cost Center Budget Actual Budget End of Yr Budg(
Board of Directors $ 150,075 $ 49,379 33% $ 130,000 87%
General Management 6935307 3363403 49% 6905000 100%
Administrative Svcs. 152999617 6417431 49% 1,300,000 100%
Public Info. & Consrv. 1105492 395969 36% 1009000 91 %
Operations 4,8719371 213705714 49% 4,8701000 100%
IT/GIS 5919896 3063949 52% 6005000 101%
Interdepartmental Rent 5249567 262,284 50% 5243567 100%
Total $ 83241,325 $ 4,0079129 49% $ 852149567 100%
Water Capital Projects
as of June 30, 2018
Projection
12 Mo YTD % of % of
Source of Funds Budget Actual Budget End of Yr Budget
Rates $ 253915626 $ 7669011 32% $ 293789157 99%
Operating Reserve - $ - 0% $ 20,000 0%
Future Water Meters 303,681 1189336 39% 3855072 127%
Total $ 296959307 $ 884,347 33% $ 2,783,229 103%