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HomeMy WebLinkAbout12 Budget Summary and Schedule Public HearingAgendaItem#12TRUCKEEDONNER!PublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:October16,2019Subject:Budget:-DraftFY20andFY21BudgetSummary-ConsiderationtoscheduleaPublicHearingRegardingtheAdoptionoftheFY20andFY21Budget___________________1.WHYTHISMATTERISBEFORETHEBOARDThisitemcontinuestheprocessoftheFY20andFY21BudgetbyreviewingtheDraftFY20andFY21Budget(Attachment1).Additionally,theBoardtraditionallyholdsaPublicHearingbeforeadoptingtheDistrict’sbudgetandoverheadrates.ThisPublicHearingensurestransparencypertheDistrict’sMissionStatement.2.HISTORYDistrictCoderequirestheDistricttoprepareatwo-yearbudget.StaffhaspresentedmultipleWorkshopsinpreparationofthedraftFY20andFY21Budget.TheWorkshopshavebeenongoingstartingwiththeAugust21,2019Boardmeeting.3.NEWINFORMATIONDraftFY20andFY21BudgetAttachment1isadraftoftheproposedFY20andFY21Budget.Itincludes:.ExecutiveSummary;.PartIDistrict’sMissionStatementandGoals;.PartIIElectricUtility’sOperating,RepairandMaintenancePlan;.PartIIIWaterUtility’sOperating,RepairandMaintenancePlan;.PartIVElectricandWaterCapitalImprovementPlans;and.PartVAppendices:01InterdepartmentalRent02BudgetedPositionsbyDepartment03LaborOverhead04TransportationOverhead05AdministrativeOverhead06ConstructionOverhead07ElectricDebtSchedule08WaterDebtSchedule09VehicleReplacementSchedule BudgetHighlightsElectricUtility:.BudgetedrevenueforFY20andFY21includesa2.7%rateincreaseforFY20and3%forFY21;.OperatingexpensesfortheElectricUtilityincreased8%inFY20comparedtoFY19.PrimarydriversbeingcostsassociatedwiththeGeneralManager’stransition,continuedincreaseinunfundedmandatesinoperationsincludingincreasedvegetationmanagementforwildfiremitigation,andincreasedstaffingandoperatingexpensesforInformationTechnology;and.CapitalexpendituresinFY20increased40%inFY20comparedtoFY19duetotheplannedAdministrationOfficesRemodelProject,inadditiontoextensiveSubstationprojects,InfrastructureMaintenanceProjects,andDistributionReplacementandImprovementprojects.WaterUtility:.BudgetedraterevenueforFY20includesthemaximum3%rateincreaseandanassumptionof3%increasedrevenuesinFY21;.OperatingandMaintenanceexpensesfortheWaterUtilityincrease12%inFY20comparedtoFY19.PrimarydriversbeingtheGeneralManager’sTransition,andincreasedexpensestocomplywithunfundedregulatorycompliancemeasuresformetermaintenanceoperationsandmaintenanceofdistributionlines..CapitalexpenditurescontinuefocusonthewaterSCADAreplacementproject,FacilitiesMeteringImprovements,andPumpandWellmaintenanceprojects.4.FISCALIMPACTTheproposedFY20andFY21BudgetisconsistentwiththeDistrict’slong-termgoals.StaffisproposingabalancedbudgetforFY20andFY21.5.RECOMMENDATION1.Receivethisreportandprovidecommentstostaff.2.SchedulethePublicHearingforNovember4,2019at6:00pm,orassoonthereafter,toreceivepubliccommentontheproposedFY20andFY21Budget./&ReginaWiseMichaelD.HolleyFinance&AccountingManagerGeneralManager a)E-C0CDzzCCMC TABLE OF CONTENTS Executive Summary I Part I -Mission Statement and Goals 4 Part II —Operating,Repair,and Maintenance Plan —Electric Utility 7 Electric Operations Introduction 8 Electric Operations Revenue Statement 9 Summary ofElectric Revenues and Expenses 10 Electric Expenditure Detail: Board of Directors II General Management 13 Administrative Services 15 Conservation 17 Electric Operations 20 Information Technology (IT)22 Part Ill —Operating,Repair,and Maintenance Plan —Water Utility 24 Water Operations Introduction 25 Water Operations Revenue Statement 26 Summary of Water Revenues and Expenses 27 Water Expenditure Detail: Board of Directors 28 General Management 30 Administrative Services 32 Conservation 34 Water Operations 36 Information Technology (IT)38 TABLE OF CONTENTS Continued: Part IV—Capital Improvement Plan —Electric and Water Utilities Part V-Appendices: 40 45 Appendix I Appendix 2 Appendix 3 Appendix 4 Appendix 5 Appendix 6 Appendix 7 Appendix 8 Appendix 9 Interdepartmental Rent Budgeted Positions by Department Labor Overhead Transportation Overhead Administrative Overhead Construction Overhead Electric Debt Schedule Water Debt Schedule Vehicle Replacement Schedule 46 48 50 52 54 56 58 59 60 EXECUTIVE SUMMARY Truckee Donner Public Utility District (District)provides electric power to 13,887 customers and water to 13,085 customers.This service,along with capital replacements,is paid by rates.Expanding electric and water systems in response to growth in the community is paid by developer fees. The District compiles a two-year budget (FY20 and FY21)for the years ending December 31 ,2020 and 2021 .The budget reflects past performance,current requirements,future opportunities,and risks.The FY20 and FY21 Budget is a balanced budget for both the District’s Electric Utility and Water Utility.That is to say,the revenue and transfers from reserves are equal to the sum of expenses,debt service,capital projects,and transfers to reserves. The budget includes a scheduled 2.7%and 3.0%electric rate increase for the FY20 and FY21 budget respectfully,and a scheduled 3%water rate increase for FY20 and assumes a 3%increase for FY21 .The Electric Utility power supply continues along the path of a balanced,diversified portfolio,including increased carbon free energy purchases. Operations continue to concentrate efforts on development work and system maintenance while also responding to new regulations and Wildfire risk mitigation measures.The Water Utility continues with operations and maintenance programs,system replacement and capital projects to reduce water loss and unaccounted water.Both utilities are improving the reliability of the District’s SCADA and communication systems.The District continues to emphasize return on equity for all programs,resulting in stable rates and improvements in the District’s and customers’bottom lines. This budget consists of five distinct parts. Part I Mission Statement Part II Electric Utility’s operations,maintenance and repairs Part Ill Water Utility’s operations,maintenance and repairs Part IV Capital budget for the electric and water systems PartV Appendices The following table is a comparison of the FY20 and FY21 Budget to the FYI 9 Budget: FY20 vs FY19 %Variance Total Elec Water Total $42,382 33,963 8,419$ FY21 vs FY20 %Variance Elec Water Total Budget Assumptions The key assumptions used in the FY20 and FY21 Budget include: .3%inflation; .Nonewdebt; .Budgeted Electric Revenue includes 2.7%scheduled rate increase for FY20 and 3%for FY21; .Budgeted Water Revenue includes the maximum potential rate increase of 3%for FY30 and 3%assumption for FY21;and FY19 Budget Electric Water Total $25,526 $13,216 $38,742 22,120 8,492 30,612 $3,406 $4,724 $8,130 Electric Water FY20 Budget FY21 Budget Total Electric Water Revenue Expenses Income Plus: From Funds Less: Debt Service Capital Projects To Reserves Surplus (Deficit) $27,293 $13,897 $41,190 $28,073 $14,309 23,928 9,505 33,434 24,168 9,795 $3,365 $4,391 $7,756 $3,905 4,514 $2,380 $1,914 $4,294 $ 600 3,228 4,827 3,220 359 190 $-$- 3,828 8,047 549 $- 7%5%6%3%3%3% 8%12%9%1%3%2% 78%-25%32%-12%31%-1%$4,238 $1,439 $5,677 $3,715 $1,878 $5,593 621 3,243 3,864 643 3,088 3,730 6,773 2,413 9,186 6,505 2,009 8,514 208 175 383 472 1,296 1,768 $-$-$-- $-$- 4%0%1%4%-5%-3% 40%-25%14%4%-17%-7% 42%-8%-30%127%642%362% .Labor cost increase of 3%budgeted for FY20 and FY21 for all employee classes. Overall Budget The Electric Utility budget is balanced with revenue collections,Carbon Cap &Trade (AB32)proceeds,and use of reserve funds.The Water Utility budget is balanced with revenue collections and the use of reserve funds. The Electric Utility revenue is projected to increase 7%in FY20 due to increased usage combined with a 2.7%rate increase compared to the FYI 9 budget.The Water revenue is projected to have a 5%increase in FY20 due to increased usage combined with a 3%rate increase.The 3%projected Electric and Water revenue increases in FY21 are due to 3% rate assumptions in that year compared to FY20. The Electric Utility is projecting a 8%increase in expenses in FY20 compared to FY19.The primary drivers being additional costs associated with the General Manager’s transition,continued increase in unfunded mandates in operations including significant increased vegetation management for wildfire mitigation,and increased staffing and operating expenses for Information Technology. The Water Utility is projecting a I 2%increase in expenses in FY20 compared to FYI 9.The primary drivers being the General Manager’s transition,in addition to an increase in expenses to comply with unfunded regulatory compliance measures for meter maintenance operations and maintenance of distribution lines. Electric Utility The utility continues to focus on system maintenance,tree trimming and a high level of Renewable Portfolio Standards. The capital projects include;District Administration Offices Remodel,Substation Projects,Maintenance and Distribution Replacement and Improvement Projects,and additional projects included in the Electric Master Plan. Water Utility The utility continues to focus on repair and maintenance of District facilities and equipment.Capital projects include the continuation of the SCADA Replacement Project,Facilities Metering Improvements,and Pump Station and Well Maintenance Projects. PART I THE FY20 &FY21 BUDGET MISSION STATEMENT MISSION STATEMENT The mission of Truckee Donner Public Utility District is to provide reliable,high quality water and electrical power services while meeting customer demand,and to manage District resources in a safe,open,responsible,environmentally sound manner at the lowest practical cost. 1 .05.020 Objectives: 1 .Responsibly serve the public. 2.Provide a healthy and safe work environment for all District employees. 3.Provide reliable and high quality water supply and distribution system to meet current and future needs. 4.Provide reliable and high quality electric supply and distribution system to meet current and future needs. 5.Manage the District in an environmentally sound manner. 6.Manage the District in an effective,efficient,and fiscally responsible manner. 1 .05.030 Goals: 1 .Responsibly serve the public. 1 .1 Conduct the District’s business in a legal,ethical,open,and transparent manner. 1 .2 Implement a proactive public outreach program. 1 .3 Promote communication and cooperation with other public and private agencies. 1 .4 Develop and implement high standards of customer service. 1 .5 Develop and implement high operational standards,procedures,and Codes of Conduct. 2.Provide a healthy and safe work environment for all District employees. 2.1 Reduce the OSHA reportable injury frequency and severity rates relative to previous reporting year. 2.2 Comply with all State and Federal regulations regarding worker safety. 2.3 Maintain the District’s wellness program. 2.4 Reduce employee injuries by maintaining an active and effective safety program. 3.Provide reliable and high quality water supply and distribution system to meet current and future needs. 3.1 Maintain and implement a current Urban Water Management Plan which includes current and future projections of water quality,demand,and supply. 3.2 Maintain and implement a current Water Master Plan,including the required facilities to meet current and future demand and supply. 3.3 Secure the necessary water rights and other legally required documentation. 3.4 Conduct effective and efficient operations,maintenance,and replacement programs. 4.Provide reliable and high quality electric supply and distribution system to meet current and future needs. 4.1 Develop and implement Risk Management Policy that considers quality and quantity of all energy supply and transmission contracts and facilities. 4.2 Maintain and implement a long-term energy and load forecast consistent with Risk Management Policy. 4.3 Procure and contract for low cost electric power supplies to reliably meet current and future loads,consistent with the Renewable Portfolio Standards and Risk Management Policy. 4.4 Maintain and implement an Electric System Master Plan,including the required facilities to meet the current and future demand and reliable supply. 4.5 Provide effective and efficient maintenance and replacement programs. 4.6 Provide an effective,efficient,and safe operations program. 5.Manage the District in an environmentally sound manner. 5.1 Seek power supply from a resource mix that satisfies its Renewable Portfolio Standard. 5.2 Develop and implement a program of water and electric power use efficiency and conservation. 5.3 Support a program of distributed generation within the District’s service area. 5.4 Conduct District business in an environmentally lawful manner. 5.5 Minimize negative impact of District operations on the environment. 5.6 Provide key leadership in the stewardship of the District’s aquifer,watershed,and natural infrastructure. 6.Manage the District in an effective,efficient and fiscally responsible manner. 6.1 Utilize modern,cost effective work methods and equipment. 6.2 Employ a qualified and productive workforce. 6.3 Provide safe work conditions and procedures that encourage employee growth,productivity and retention. 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation. 6.5 Review and update the Financial Goals policy to achieve a stable financial condition to include planning,revenue,debt,and reserve goals. 6.6 Develop appropriate financial procedures to assure responsible financial management. PART II THE FY20 &FY21 BUDGET OPERA TING,MAINTENANCE,AND REPAIR ELECTRIC UTILITY ELECTRIC OPERATING,MAINTENANCE &REPAIR PLAN INTRODUCTION The Electric budget projects total operating expenditures and transfers to reserve funds for FY20 and FY21 in the amounts of $24,757,770 and $25,282,855 respectively.Capital expenditures are budgeted for FY20 and FY21 in the amounts of $7,743,497 and $7,504,686 respectively.Total operating revenues and transfers from various reserve funds total $31,531,058 and $31,787,842.Of the $7,743,497 for FY20 capital expenditures,$3,969,692 is paid by operating funds.Of the $7,504,686 for FY21 capital expenditures,$4,209,900 is paid by operating funds.The remaining projects are funded by reserves and customer contributions.The Electric budget includes a 2.7%electric rate increase in FY20 and a 3%increase in FY21 as previously approved by the Board and achieves an overall balanced budget. During FY20 and FY21 ,the District continues along the path of a balanced,diversified power supply,including increased carbon free energy purchases. In FY20 and FY21 ,we continue to commit resources to improving reliability in our service area and addressing increasing unfunded regulatory mandates and wildfire mitigation measures. No new debt will be acquired. ELECTRIC OPERA TIONS REVENUE STA TEMENT OPERATING BUDGET PRIOR 12 MOS REVENUE FY19 ENDING 32O19 Residential Sales $13,347,313 $13,661,469 Commercial Sales 9,821,805 9,888,947 Interdepartmental Sales 1,237,009 1,234,390 Miscellaneous Operating Revenue 167,217 193,446 Standby Revenue 20,884 20,040 Pole Replacements and Contacts 262,000 497,640 Interdepartmental Rent 542,329 467,967 TOTAL OPERATING REVENUE $25,398,558 $25,963,899 Interest Income 127,500 398,575 Transfer in from Vehicle Reserve Fund 0 456,674 Transfer in from Capital Reserve Fund 1,205,775 2,476,702 Transfer in from Facility Fees Fund 0 0 Transfer in from overhead to cover CalPers sidefund interest payment 48,106 54,600 Transfer in from AB32 Reserve Fund 1,126,330 1,196,093 TOTAL ELECTRIC REVENUE &TRANSFERS $27,906,269 $30,546,543 BUDGET $BUDGET %BUDGET BUDGET $BUDGET %BUDGET FY20 CHANGE CHANGE FY21 CHANGE CHANGE $14,290,594 $943,281 7%$14,705,571 $414,977 3% 10,366,563 544,758 6%10,677,560 310,997 3% 1,295,816 58,807 5%1,308,775 12,958 1% 168,889 1,672 1%170,578 1,689 1% 18,789 (2,096)-10%18,225 (564)-3% 264,620 2,620 1%267,266 2,646 1% 506,843 (35,486)-7%536,536 29,693 6% $26,912,115 $1,573,557 6%$27,684,571 $772,396 3% 387,090 253,590 199%388,772 7,622 2% 445,000 445,000 -450,000 5,000 1% 7,388,324 782,549 75%1,772,658 384,334 28% 970,273 970,273 -72,428 (897,845)-93% 34,256 (13,850)-29%79,532 (74,724)-43% 7,400,000 273,670 24%1,400,000 0 0% $31,531,058 $3,624,789 13%$37,787,842 $256,784 7% SUMMARY OF ELECTRIC REVENUES AND EXPENSES BUDGET PRIOR 12 MOS FY79 ENDING 3.2019 $27,906,269 $30,546,543 BUDGET $BUDGET %BUDGET FY20 CHANGE CHANGE $31,531,058 $3,624,789 13% RECAP REVENUES LESS EXPENSES ELECTRIC REVENUES &TRANSFERS LESS EXPENSES: Board of Directors General Management Administrative Services Conservation Electric Operations Information Technology (IT) Purchased Power Building Maintenance (managed by Water Ops) TOTAL OPERATING EXPENSES Debt Service (Appendix VIII) Transfer to Vehicle Reserve Transfer to Electric Rate Reserve Fund Transfer to Electric Capital Fund TOTAL EXPENSES &TRANSFERS NETAVAILABLE FOR CAPITAL 748,344 801,281 1,466,221 938,112 4,763,503 701,955 12,784,886 515,352 $22,119,654 600,106 202,239 157,271 0 23,079,270 S4.826.999 719,074 778,936 1,275,612 644,995 5,221,530 763,993 70,957,784 430,904 $20,192,168 589,872 202,239 157,271 0 21,141,490 S9.405.053 275,812 787,784 1,433,057 946,279 5,785,319 7,486,077 72,787,524 426,555 $23,928,406 621,056 208,307 0 0 24,757,770 S6.773.289 127,468 (73,497) (33,164) 8,167 1,021,876 784,122 2,638 (88,797) $1,808,752 20,950 6,068 (157,271) 0 1,678,500 S1.946.290 BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $31,787,842 $256,784 1% 766,170 (109,702)-40% 902,536 114,752 15% 1,417,727 (75,935)-7% 817,370 (728,909)-14% 5,979,295 193,976 3% 1,529,658 43,582 3% 12,915,399 127,875 1% 440,391 13,836 3% $24,167,880 $239,474 1% 642,933 21,877 4% 214,556 6,249 3% 0 0 - 257,486 257,486 0% 25,282,855 525,086 2% S6.504.986 fS268.302)-4% 86% -2% -2% 7% 21% 172% 0% -17% 8% 3% 3% -100% 0% 7% 40% BOARD OF DIRECTORS (Electric Budget) The Board of Directors consists of five publically elected members who serve four-year terms.The Truckee Donner Public Utility District is a multi-county agency;including Nevada and Placer counties.The Board generally meets twice each month on the first and third Wednesdays.The Board conducts its business in a legal,ethical,open,and transparent manner. The Directors of the District represent customer interests,set policies and rates,study and assess implications of new legislation and alternatives.The Board of Directors are responsible for District policies,governance,and decision making for the District.The Board evaluates and provides direction and guidance on District business.The Board reviews and takes action on the overall District perlormance and per[ormance reviews with the General Manager. The Board’s adopted Mission Statement and Statement of Objectives and Goals,were used to guide the FY20 and FY21 budget process. Staff continues with their commitments,at the Board’s direction,as it relates to public outreach,increase in efficiencies, cooperation,collaboration,and setting a high standards of ethical conduct.Meetings of the Board continue to be televised and live streamed in compliance with the Board’s dedication to transparency.All Board meetings meet and exceed the requirements set forth in the Ralph M.Brown Act. All of these actions help manage the District in an effective,efficient and fiscally responsible manner. BOARD OF DIRECTORS ELECTRIC EXPENDITURE DETAIL Outside Services Employed $25,750 $72,505 $25,750 $0 This account is utilized to reflect costs associated with the Districts general counsel attendance at board meetings and his performance of research on legal issues presented at the board level. Miscellaneous General Expenses 722,594 706,509 250,062 727,468 This account covers compensation and benefits paid to directors,election,annual employee recognition dinner,training and conferences attended by directors,minor office supplies and equipment. 0%$26,523 $773 3% 104%139,588 (110,474)-44% TOTAL $748,344 $179,074 $275,812 $727,468 86%$166,110 ($109,702)-40% BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET BUDGET $BUDGET %BUDGET FY19 ENDING 3.19 FY20 CHANGE CHANGE FY27 CHANGE CHANGE GENERAL MANAGEMENT (Electric Budget) The District’s General Management Department consists of the General Manager;District Clerk,support staff,and the Public Information Officer!Strategic Affairs Director.The General Manager is the administrative head of the District with responsibility for managing the day- by-day affairs of the organization.The District Clerk manages the General Managers office and is responsible for all legislative actions for the Board of Directors,serves as the custodian of records and Election Officer for the District,ensures compliance with laws and regulations as it relates to the Clerk’s office,provides high level administrative duties to the General Manager and Board of Directors.As well as,acts as the District’s real property representative,LAFCo,and oversees the District complex facilities.The Public Information Officer!Strategic Affairs Director is responsible for continued public outreach on all affairs of the District ensuring communication and collaboration with the community and ensuring compliance on strategic,legislative,and regulatory affairs of the District. The primary role of the General Manager is to lead the District and serve as the primary contact between the elected Board and District staff.This includes overall fiscal responsibility,negotiating with the Union,operations,process,procedures,controls,staffing,and ensuring that the District is meeting its goals and objectives.The General Manager ensures certain matters appearing on the agenda are adequately researched and presented to the Board of Directors. The main District goals for FY20 and FY21 are: 6.1 Utilize modern,cost effective work methods and equipment; 6.2 Employ a qualified and productive workforce; 6.3 Provide safe work conditions and procedures that encourage employee growth,productivity and retention; 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation;and 6.5 Ensure that the Districts various capital projects are implemented in a smooth and cost effective manner. In order to maintain the improved reporting relationship between the General Manager and the Board of Directors,the General Manager will continue to hold semi-annual performance reviews with the Board. The District’s remains committed to the safe and healthy work environment to all District employees. ELECTRIC EXPENDITURE DETAIL BUDGET FY21 $90,685 96,082 411,319 77,020 64,581 2,305 91,861 68,683 (63,869) 742 22,787 2,181 -50% 47% 33% 3% $BUDGET CHANGE ($11,676) 3,183 134,889 26,575 GENERAL BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET MANAGEMENT FY79 ENDING 3.2079 FY20 CHANGE CHANGE Public Information $103,768 $90,451 $102,362 ($1,406)-7% This account includes the activities of the PlO plus the website and newsletter. Legislature &Regulations 78,476 80,587 92,899 14,423 18% This account is for legislation and regulation tracking labor. Administrative &General -Salaries 365,882 378,31 1 276,429 (89,453)-24% This account is used to charge general administrative staff time other than safety and board related activities. Office Supplies &Expenses 47,535 74,262 50,505 2,970 6% This account is used to cover cell phone use,computer expenses,dues &memberships including LAFCO and NCPA,industry meetings,office supplies,postage, training,assessment,personnel expenses and safety. Outside Services Employed 74,873 34,807 728,450 53,637 72% This account is used to charge the costs of general counsel to review contracts and agreements,property issues,insurance claims,bid issues,capital contract issues and union matters. Injuries &Damages 18,647 18,57 7 7,564 (77,083)-92% This account includes labor for department safety meetings and training and the organization’s wellness program. GeneralAdvertising Expenses 50,537 36,344 69,074 18,537 37% This account is used for the cost of publishing ordinances,surplus material,and other legal ad requirements. Misc General Expenses 61,624 65,663 66,501 4,877 8% This account is used to perform board related activities such as preparing meeting minutes,resolutions and ordinances;it is also charged with dues and memberships in electric utility organizations. TOTAL $807,282 $778,936 %BUDGET CHANGE -77% 3% 49% 53% $787,784 ($13,498)-2%$902,536 $1 74,752 75% ADMINISTRATIVE SERVICES (Electric Budget) The Administrative Services Department supports both the Electric and Water utilities and is organized into two primary functional areas:Customer Service and Finance and Accounting.These functional areas include responsibility for the District’s customer services,conservation,collections,billing,meter reading,accounting,finance,and purchasing.It is staffed by 19 people co-managed by the Human Resources/Business Operations Manager and Finance and Accounting Manager. Administrative Services will continue to utilize technology to increase customer engagement efficiently and accurately.The continued development of the District’s web-based portal,called,“Smart Hub,”enables customers to have easy,remote access to their power and water consumption,in addition to the already existing capability of paying bills on-line and establishing automatic recurring payments.The Department continues to integrate significant advancements in technology with the existing suite of electronic tools available to support advancements available to our customers including the data from the new electric meter system.Staff will continue to optimize these and other tools to minimize costs and still maximize customer engagement. Staff will continue to take advantage of opportunities to lower costs and improve internal controls and operating procedures for billing,accounting,and computer operations. Staff will continue to be trained and developed to provide safe work conditions and encourage employee growth,productivity and retention. The District’s financial goals will be reviewed annually to achieve a stable financial condition including planning,revenue, debt,and reserve goals. ELECTRIC EXPENDITURE DETAIL ADMINISTRATIVE BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET BUDGET $BUDGET %BUDGET SERWCES FY19 ENDING 3.2019 FY20 CHANGE CHANGE FY21 CHANGE CHANGE Meters/Services Operations Expenses $53,893 $44,443 $0 ($53,893)-100%$0 $0 - This account is used by the meter readers to charge their time to perform meter connects,disconnects and service transfers. Customer Installation Expense 787 918 0 (787)-100%0 0 - This account includes charges for G0165 inspections for the electric department as well as investigations of energy diversion. CustomerAccount Operations Expense-Salaries 89,731 96,925 147,619 57,888 65%155,783 8,164 6% This account includes the management staff supervision of the customer service and billing functions. Meter Reading Expense 52,596 48,404 8,592 (44,004)-84%8,850 258 3% This account is used to charge meter reading expenses which includes meter reader labor,overheads,and the hardware and software that supports the meter readers;it also includes their clothing allowance,uniform expenses,vehicle expenses and training. Customer Records &Collections Expense 512,292 429,569 575,604 63,312 12%551,863 (23,742)-4% This account includes the major expenses involved in serving our customers.Included are answering and directing phone calls,answering customer questions,customer account setup expenses,taking and processing customer payments,creating connect,disconnect and transfer paperwork for the crews,creating and reviewing bills,expenses related to the printing and mailing ofthe bills,account collection expense,billing software and hardware support,standby billing expenses,billing equipment maintenance expenses,printed billing and collection forms,billing postage and customer service staff training. Customer Records &Collections -Meter Readers 23,338 17,919 18,946 (4,392)-19%19,636 690 4% This account includes the meter readers labor and overheads to deliver 48 hour notices and perform disconnect and reconnects relating to non-payment of utility bills. ProvisionforBadDebts 18,760 0 12,851 (5,909)-31%12,851 0 0% This account represents the amount of uncollectable bills for the year. Administrative &Operations General-Salaries 481,449 382,062 470,287 (11,162)-2%462,481 (7,806)-2% This account includes most of the labor for the administration department except meter reading and customer account related expenses.It includes preparation of the budget and financial statements,accounts payable and payroll,construction accounting,cash management activities and processing the daily mail. Office Supplies &Expenses 77,004 73,004 64,229 (12,775)-17%66,156 1,927 3% This account includes bank charges,answering service charges,phone charges,computer and network operating expenses,software maintenance and support for the accounting system, printed forms and material,office equipment leases and equipment maintenance expenses. Outside Services Employed 32,418 30,778 13,843 ($18,576)-57%14,258 $415 3% This account includes any professional services hired from the outside such as audit or accounting services,trust services for our certificates of participation and community facilities districts and arbitrage calculation services for the same. Insurance 117,681 142,921 103,638 (14,043)-12%106,747 3,109 3% This account Includes annual insurance premiums for property,liability,umbrella liability,directors &officers liability,difference in conditions,boiler &machinery coverage insurance. Injuries &Damages (Safety)6,272 8,669 17,447 11,176 178%18,496 1,049 6% This account Includes costs for safety training,Department of Transportation Drug and Alcohol training,worker’s compensation expenses for employees who have been injured and safety related equipment. TOTAL $1,466,221 $1,275,612 $1,433,057 ($33,164)-2%$1,417,121 ($15,935)-1% CONSERVATION (Electric Budget) This section will describe specific electric conservation objectives within the FY20 and FY21 budgets. The Conservation Department is responsible for providing energy and water conservation services,supporting the State’s carbon reduction goals,and management of the District’s State-mandated Public Benefits Programs. The Department was physically integrated into the Administrative Services department in the FY17 in order to provide customers enhanced and more efficient customer service.The integration has included the cross training of Customer Service Representatives (CSR5),which has improved the promotion and adoption ofthe District’s programs and eliminated the need to pass customers between departments to have their questions answered.The knowledge of conservation programs has also provided CSRs with options to help customers as they answer high bill,leak and/or shutoff questions, which has further enabled the District to be customers’trusted energy provider. The Department has had a very successful portfolio of energy efficiency and conservation programs.Significant progress has been made developing the District’s energy conservation programs with a continued emphasis on return on investment. Historically,the District’s energy efficiency programs have focused on the most cost effective end use loads to target which have been residential lighting and commercial retrofit projects.Lighting has dominated the strong evaluation,measurement and verification (EM&V)results and has been serviced by product giveaways,rebates,and holiday LED lights.The porffolio has also had strong emphasis on helping commercial customers reduce energy usage through lighting retrofits,refrigeration upgrades,and custom projects.Residential lighting and commercial retrofit projects account for almost 70%of the District’s Conservation portfolio’s energy savings.In addition,the District offers appliances rebates and education programs through the Residential Energy Survey as well as with the Tahoe Truckee Unified School District. However,annual program participation has been steadily declining.The majority of low-cost improvements have already been upgraded and the next tier of conservation upgrades are significantly more expensive to replace.Also,some of the District’s most successful programs are being phased out by new regulatory standards.For example,driven by changes to the building code (Title 24),201 9 will be the last year the District will be able to claim LED lighting savings.The combination of program saturation plus regulatory changes will require new programs to continue the District’s successful support of conservation. While the District has and will continue to support and expand our energy and water conservation programs,customer programs have been expanding to serve emerging customer needs.For FY20 &FY 21 ,conservation programs will focus on developing new programs and services that leverage our new AMI equipment,electrification,and increasing engagement with our commercial programs. Prepaid Metering will be the most significant program to be launched in FY20,and is a priority due to the customer and utility advantages that have been demonstrated by other utilities that have implemented the program.Customers will benefit from reduced deposits/fees,no credit checks,and better energy usage management through more awareness of account balance and energy usage alerts.The ability for customers to proactively manage their energy usage and account balances benefits the District by reducing delinquencies,disconnects,and lower average final bills and write-offs. Solar and local Distributed Energy Resources is another investment area for the upcoming budget cycle.Funds have been allocated to support the District’s Solar Awning project in development.In addition,the California Title 24 Building Code starting in 2020 will require all new residential buildings to have solar.The code allows for the requirement to be met through a Community Solar installation,so the District will investigate how a utility scale installation can reduce the cost of compliance and better serve the power needs of our customers. Lastly,the District will be looking for opportunities within the Water Department to support water conservation efforts that drive energy savings.The team will utilize new sensors and monitoring equipment to detect leaks,and analyze SCADA and AMI data to identify opportunities more efficient equipment upgrades.These efforts will be in support of the upcoming AB 1668 and SB 606 mandates. The budget also reflects decrease of spending in certain program areas due to continued saturation of some of the District’s energy conservation programs.FYI 9 is the last year the District will support lighting programs. ELECTRIC EXPENDITURE DETAIL BUDGET PRIOR 12 MOS BUDGET CONSERVATION FY79 ENDING 3.2079 FY20 Public Benefits -Conservation $472,470 $247,478 $204,547 The account includes general energy conservation and efficiency programs and wire to water. Public Benefits -Research &Development 73,586 73,950 97,648 This account includes energy conservation and efficiency R&D activities. Public Benefits -Income-Qualifed 84,382 23,725 54,100 This account includes income-qualifed programs. Public Benefits -Renewable Power 152,637 182,478 300,000 This account includes renewable purchases and programs. Public Benefits -Rebates 244,448 737,560 222,589 This account includes energy conservation and efficiency rebates. Admin &General Salaries 5,080 3,685 26,456 This account includes the administrative salaries to perform various administrative Office Supplies &Expenses 22,138 77,033 15,783 This account includes office supplies,dues,memberships and meeting and training expenses. GeneralAdvertising 684 75,261 18,164 This account includes TDPUD marketing and media activities. Misc General Expense Z686 9,885 7,000 This account includes support of community activities such as sponsorship of the Truckee Home Show,Chamber activities,etc. TOTAL $938,1 12 $644,995 $946,279 $BUDGET %BUDGET BUDGET $BUDGET %BUDGET CHANGE CHANGE .FY27 CHANGE CHANGE ($207,930)-50%$207,530 $2,989 7% 84,062 679%103,756 5,508 6% (30,282)-36%55,954 1,854 3% 147,363 97%750,000 (150,000)-50% (27,859)-9%230,609 8,020 4% 21,375 427%27,947 7,491 6% (6,356)-29%16,256 473 3% 17,480 2557%18,709 545 3% 4,314 767%7,270 210 3% $8,167 1%$877,370 ($728,909)-14% ELECTRIC OPERATIONS The Electric Operations is responsible for operating,maintaining,repairing,and expanding the District’s electric distribution system.The primary responsibility is to provide effective and efficient maintenance and replacement programs and provide an effective,efficient,and safe operations program. The FY20 and FY21 budget staffs the Department with an Electric Utility Director,an Electric Engineering Manager,an Electric Operations Manager,an Assistant Electric Operations Manager,two Electric System Engineers,three Electrician I Meter Technicians,one Meter Reader CoordinatorlUtility Worker,one Foreman Electrician,three Electric Foremen,a Lead Lineman,a Substation Lineman,eight Lineman,two Apprentice Lineman and a Vehicle Maintenance Foreman. Electric Operations provides work conditions and procedures that encourage employee safety,growth,productivity,and retention.Apprentices are trained both internally and externally.Journeymen are trained to utilize approved rubber gloving practices.Employees are trained on underground practices and materials,as the District increasingly transitions to underground utility facilities. During FY19,District customer growth continued to increase at a modest pace.This modest growth is forecasted to continue in FY20 and FY21 .The department will concentrate efforts on development work and system maintenance projects.Approximately sixty poles have been identified for replacement each year.Vegetation management (tree trimming)operations are a high priority due to recent regulatory changes affecting the District including the requirement to develop and implement a Wildfire Mitigation Plan. Capital improvements will be implemented as identified in the Electric System Master Plan. ELECTRIC EXPENDITURE DETAIL This account Includes labor and material to maintain the reclosers and regulators within the substations. Maintenance of Distribution Lines 478,081 603,134 This account Includes labor for safety meetings,safety equipment and safety meeting/training expenses. Regulatory Commission Expense 122,005 This account includes staff labor and legal fees for any FERC activity. TOTAL $4,763,503 $5,221,530 ELECTRIC OPERATIONS BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET FY19 ENDING 3.2019 FY20 CHANGE CHANGE Operations/PM Sup &Engineering $1,224,189 $1,352,339 $1,081,876 ($142,314)-12% This account is utilized by the electric superintendent and electric engineer for supervision,engineering and management of District electric operations and electric projects.It also includes design and engineering labor of District electric projects. Substation Operations/PM 180,364 190,097 276,845 36,481 20% This account Includes all work done on,and within,substations including snow removal,maintenance,repairs and associated materials and employee training. Distribution Operations/PM 1,395,589 1,655,567 2,301,220 905,632 65% This account Includes all maintenance work such as mandated programs,pole testing,tree trimming,pole clearing,small tools and employee training. Security/Street Light Operations/PM 1,279 1,371 1,443 164 13% This account Includes the purchase and installation of street and security lights throughout the District. Meter Operations/PM 95,799 152,782 217,647 121,848 127% This account includes connecting and disconnecting meters,checking the operation of demand meters,meter audits where we verify the wiring and accuracy of commercial meter installations,rebuilding of old commercial meter installations and training of meter technicians. Customer Installation Operations/PM 256,862 262,793 228,759 (28,103)-11% This account primarily includes the inspection of new residential services including checks of wiring code compliance.It is also used to do field investigations of customer high bill complaints,voltage irregularities and energy diversion. Misc General Operations/PM 516,539 548,340 558,427 41,888 8% This account includes testing of transformer oil to determine PCB content,GIS mapping of the electric system,SCADA repairs and maintenance,cell phones qne pages.It also includes computer hardware and software maintenance,clothing allowance,DMV physicals,meals,uniforms,land fill charges,meeting expenses,advertising,new employee testing,employee development and training,and Underground Service Alert marking of utilities. Maintenance of Station Equipment 20,600 7,654 3,352 (17,248)-84% 701,844 223,762 47% 221% -31% 3% -53% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $1,147,465 $65,590 6% 218,472 1,626 1% 2,365,482 64,262 3% 1,489 46 3% 210,658 (6,989)-3% 236,065 7,305 3% 579,762 21,335 4% 3,457 105 3% 724,927 23,083 3% 5,748 198 4% 154,500 4,500 3% 270,919 10,193 4% 60,351 2,722 5% $5,979,295 $193,976 3% This account primarily includes labor and material material for recloser repair,distribution line repair,damage tree clearing,standby labor and storm damage repair. Maintenace of Security/Street Lights 1,728 3,988 5,550 3,822 This account includes labor,materials and supplies (replacement bulbs,photocells and fixtures)for the maintenance and repair of security and street lights. Professional Services 218,034 144,071 150,000 (68,034) This account includes payments to Energy Source and Power Supply consultants.It also includes UAMPS expenditures. Injuries &Damages (Safety)252,433 252,971 46,423 260,726 57,629 8,293 (64,376) $5,785,319 $1,021,816 21% INFORMATION TECHNOLOGY (IT) (Electric Budget) The Information Technology (IT)Department is headed by the Chief Information Officer 1 IT Director and also includes the Systems Engineer,SCADA Engineer,Cyber Security &Applications Engineer,GIS Coordinator,and Data Analyst & Administrator positions.The IT Department is responsible for networks,servers,communications,operations technology, physical and cyber security,geographic information systems,databases,systems integration,business intelligence,AMI and desktops.Internal IT staff helps reduce outside contractor costs for the District’s data and technology needs, increase IT knowledge of systems security,and provide additional accountability and redundancy. The IT Department implements technology strategies that optimize the operations of the District by providing tools that enable the District to operate faster,better,and more cost efficiently,while providing secure access to critical control, mapping,and information systems.Information Technology’s aim is to provide timely,relevant,and accurate information, when and where it is needed,to support sound decisions that improve the quality,efficiency,cost,safety,and environmental footprint of the products and services the District delivers and uses. To achieve the goals and implement the strategies in the IT Master Plan,the IT Department utilizes the following guiding principles below focusing on leadership and excellence through quality of service,responsiveness,innovation, professionalism,and teamwork.These principles require commitment not only from the District’s IT professionals,but from all District employees. I .Consult and advise department heads to drive IT initiatives according to business needs,goals,and objectives,and developing a sound business case before making any new investment. 2.View IT from the perspective of the entire District and not from the perspective of individual departments. 3.Acquire,manage,and use technology resources economically and efficiently through standardized information technology selection and implementation processes. 4.Securely hold and manage technology assets to protect private information. 5.Develop mechanisms and processes to share information easily within the organization and with customers and partners. 6.Understand that availability and access to technology is a given,and design and build systems accordingly. 7.Aggregate,where feasible,to reduce duplication,and employ information technology that is flexible and interoperable to respond quickly and efficiently to changing business needs. 8.Devise strategies to leverage investments in the District’s existing technology. 9.Train the workforce in the skills needed to effectively use IT systems and the information they contain. ELECTRIC EXPENDITURE DETAIL LBUDGETPRIOR12MOSBUDGET $BUDGET %BUDGET BUDGET $BUDGET %BUDGET INFORMATION TECHNOLOGY(IT)FY19 ENDING 3.2019 FY20 CHANGE CHANGE FY21 CHANGE CHANGE Engineering &SCADA Operations $66,580 $91,538 $175,258 $108,678 163%$185,610 $10,352 6% This account is for the operational use of SCADA,Outage Management and Engineering support. GIS/Engineering Operations 158,830 123,142 246,108 87,278 55%255,619 9,51 1 4% This account is for the maintenance of software and data that supports engineering and SCADA. MeterReading 12,416 51,789 150,655 138,239 1113%156,022 5,367 4% This account is for the maintenance of software and data that supports meter technology and AMI. Customer Records 125,1 17 724,915 164,241 39,124 31%151,309 (12,932)-8% This account is for the maintenance of software and data that supports Customer Information and Customers. Administrative &General IT Ops 285,458 338,196 677,281 391,823 137%706,064 28,783 4% This account is for the maintenance of hardware and software infrastructure that supports data transport,storage and security. Office Supplies &Expenses 23,201 26,840 76,543 (6,659)-29%77,039 496 3% This account includes office supplies,dues,memberships,meeting and training expenses. Outside Services Employed 28,840 4,152 40,000 1 1,160 39%41,200 1,200 3% This account is for outside professional services contracted to maintain hardware,software and data. Safety 1,513 3,421 15,991 14,478 957%16,796 805 5% This account includes department labor for safety meetings,safety equipment and training expenses. TOTAL $701,955 $763,993 $1,486,077 $784,122 112%$7,529,658 $43,582 3% PART III THE FY20 &FY21 BUDGET OPERA TING,MAINTENANCE,AND REPAIR WATER UTILITY WATER OPERATIONS INTRODUCTION The Water budget projects total operating expenditures and transfers to reserve funds for FY20 and FY21 in the amount of $12,923,028 and $14,177,852 respectively.The Water budget also forecasts capital expenditures for FY20 and FY21 in the amount of $2,41 2,868 and $2,008,954 respectively.For capital expenditures,$2,252,867 and $1 ,738,954 will be paid by rates each year.The remaining costs will be paid from reserve funds.Operating revenues and transfers from various reserve funds total $15,335,896 for FY20 and $16,1 86,807 for FY21 .The water budget proposes a 3%rate increase in FY20,achieving an overall balanced budget.The District plans to implement a cost of service and rate study in 2020 to evaluate potential rate increase for 2021. The mechanics and hydraulics of water utility service is very complex in a mountain environment.The majority of the District’s water supply comes from the Martis Valley Aquifer in the southeast portion of the service territory.The customer base is spread over forty six square miles and covers an elevation change from 5,700 feet to 7,500 feet.The system currently consists of 13 wells,230 miles of pipeline,36 storage tanks,and 24 pump stations.The complexity of the system and challenges associated with an alpine environment impact the overall fiscal requirements to operate,maintain, repair and replace key infrastructure.One of the primary goals of the water utility is to control the operating costs and minimize future rate increases. During FY20 and FY21 ,the Water Utility will continue with operations and maintenance programs,system replacement and capital projects,the SCADA replacement project and various on-going projects to reduce water loss and unaccounted water.These projects are in alignment with the key components of the District’s mission to maintain a sustainable and reliable potable water service. WA TER OPERA TIONS REVENUE STA TEMENT OPERATING BUDGET PRIOR 12 MOS REVENUE FY79 ENDING 3.2019 Residential Sales $11,060,382 $70,932,423 Commercial Sales 1,623,946 7,566,860 Misc.Operating Revenue 253,978 223,734 Miscellaneous Rents 70,121 75,223 Standby Revenue 129,437 123,280 TOTAL OPERATING REVENUE $73,737,864 $12,921,520 Interest Income 77,633 126,693 Transfer in from Facilities Fees &Reserve -Debt -2006 COP 355,324 355,804 Transfer in from DLAD surcharge for debtpayment 800,852 800,852 Transfer in from DLAD billing surcharge -2006 COPs 700,207 98,504 Transfer in from Meter Reserve Fund 796,379 0 Transfer in from Vehicle Reserve Fund 429,838 0 Transfer in from overhead to cover CalPers sidefund interest payment 32,070 36,399 Transfer in from Prop 55 reserve for final debt payment 0 0 TOTAL WATER REVENUE &TRANSFERS $15,130,107 $14,339,777 BUDGET $BUDGET %BUDGET FY20 CHANGE CHANGE $11,742,532 $682,150 6% 1,673,548 (10,398)-1% 241,738 (1Z240)-5% 75,518 5,397 8% 723,280 (6,757)-5% $73,796,616 $658,752 5% 700,000 22,367 29% 357,617 2,293 1% 800,852 0 0% 97,973 (2,234)-2% 0 (796,379)-100% 160,000 (269,838)-63% 22,838 (9,232)700% 0 0 100% $15,335,896 $205,789 1% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $72,094,808 $352,276 3% 1,661,979 48,371 3% 252,578 10,847 4% 76,657 1,133 1% 779,582 (3,698)-3% $14,205,538 408,922 3% 703,000 3,000 3% 356,179 (1,438)0% 800,852 0 0% 96,276 (1,757)-2% 0 0 - 270,000 170,000 700% 13,022 (9,876)-43% 342,000 342,000 - $76,786,807 $850,911 6% SUMMARY OF WATER REVENUES AND EXPENSES BUDGET PRIOR 12 MOS RECAP REVENUES LESS EXPENSES FY19 ENDING 3.2019 WATER REVENUES &TRANSFERS $15,130,107 $14,339,771 LESS EXPENSES BoardofDirectors 148,344 116,415 General Management 717,413 687,694 Administrative Services 1,374,588 1,202,291 Conservation 118,978 93,559 Water Operations 4,963,125 5,20Z263 Information Technology (IT)627,662 651,177 Interdepartmental Rent (Appendix I)542,329 483,225 TOTAL OPERATING EXPENSES $8,492,439 $8,436,624 Debt Service (Appendix IX)3,228,003 3,215,064 Transfer to Vehicle Reserve Fund 169,620 169,620 Transfer to Capital Reserve 20,000 20,000 TOTAL EXPENSES &TRANSFERS $11,910,062 $11,841,308 NETAVAILABLE FOR CAPITAL $3,220,045 $2,498,463 BUDGET $BUDGET %BUDGET FY20 CHANGE CHANGE $15,335,896 $205,789 1% 275,812 127,468 86% 677,706 (39,706)-6% 1,444,943 70,355 5% 100,659 (18,319)-15% 5,750,469 787,344 16% 749,045 121,383 19% 506,843 (35,486)-7% $9,505,478 $1,013,038 12% 3,242,842 14,839 0% 174,709 5,089 3% 0 (20,000)-100% $12,923,028 $1,012,966 9% $2,412,868 ($807,177)-25% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $16,186,807 $850,911 6% 166,110 (109,702)-40% 798,223 120,517 18% 1,429,134 (15,809)-1% 104,752 4,093 4% 5,991,979 241,510 4% 767,900 18,855 3% 536,536 29,693 6% $9,794,634 $289,157 3% 3,087,521 (155,321)-5% 279,950 105,241 60% 1,015,747 1,015,747 - $14,177,852 $1,254,824 10% $Z008,954 ($403,913)-17% BOARD OF DIRECTORS (Water Budget) The Board of Directors consists of five publically elected members who serve four-year terms.The Truckee Donner Public Utility District is a multi-county agency;including Nevada and Placer counties.The Board generally meets twice each month on the first and third Wednesdays.The Board conducts its business in a legal,ethical,open,and transparent manner. The Directors of the District represent customer interests,set policies and rates,study and assess implications of new legislation and alternatives.The Board of Directors are responsible for District policies,governance,and decision making for the District.The Board evaluates and provides direction and guidance on District business.The Board reviews and takes action on the overall District performance and performance reviews with the General Manager. The Board’s adopted Mission Statement and Statement of Objectives and Goals,were used to guide the FY20 and FY21 budget process. Staff continues with their commitments,at the Board’s direction,as it relates to public outreach,increase in efficiencies, cooperation,collaboration,and setting a high standards of ethical conduct.Meetings of the Board continue to be televised and live streamed in compliance with the Board’s dedication to transparency.All Board meetings meet and exceed the requirements set forth in the Ralph M.Brown Act. All of these actions help manage the District in an effective,efficient and fiscally responsible manner. WATER EXPENDITURE DETAIL BOARD OF BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET DIRECTORS FY19 ENDING 3.2019 FY20 CHANGE CHANGE Outside Services Employed $25,750 $12,505 $25,750 $0 0% This account is utilized to reflect costs associated with the Districts general counsel attendance at Board meetings and his performance of research on legal issues presented at the Board level. Miscellaneous General Expenses 122,594 103,910 250,062 127,468 104% This account covers compensation and benefits paid to Directors,election,annual employee recognition dinner,training and conferences attended by Directors,minor office supplies and equipment. TOTAL $148,344 $116,415 $275,812 $127,468 86% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $26,523 $773 3% 139,588 ($110,474)-44% $166,110 ($109,702)-40% GENERAL MANAGEMENT (Water Budget) The District’s General Management Department consists of the General Manager;District Clerk,support staff,and the Public Information Officer!Strategic Affairs Director.The General Manager is the administrative head of the District with responsibility for managing the day-by-day affairs of the organization.The District Clerk manages the General Managers office and is responsible for all legislative actions for the Board of Directors,serves as the custodian of records and Election Officer for the District,ensures compliance with laws and regulations as it relates to the Clerk’s office,provides high level administrative duties to the General Manager and Board of Directors.As well as,acts as the District’s real property representative,LAFCo,and oversees the District complex facilities.The Public Information Officer!Strategic Affairs Director is responsible for continued public outreach on all affairs of the District ensuring communication and collaboration with the community and ensuring compliance on strategic,legislative,and regulatory affairs of the District. The primary role of the General Manager is to lead the District and serve as the primary contact between the elected Board and District staff.This includes overall fiscal responsibility,negotiating with the Union,operations,process, procedures,controls,staffing,and ensuring that the District is meeting its goals and objectives.The General Manager ensures certain matters appearing on the agenda are adequately researched and presented to the Board of Directors. The main District goals for FY20 and FY21 are: 6.1 Utilize modern,cost effective work methods and equipment; 6.2 Employ a qualified and productive workforce; 6.3 Provide safe work conditions and procedures that encourage employee growth,productivity and retention; 6.4 Control the growth of the District’s discretional-operational spending to a rate less than the rate of inflation;and 6.5 Ensure that the Districts various capital projects are implemented in a smooth and cost effective manner. In order to maintain the improved reporting relationship between the General Manager and the Board of Directors,the General Manager will continue to hold semi-annual performance reviews with the Board.An end-of-year perFormance review is scheduled February 201 8 to review all of the General Manager’s accomplishments over the past year. The District’s remains committed to the safe and healthy work environment to all District employees. WATER EXPENDITURE DETAIL BUDGET PRIOR 72 MOS BUDGET $BUDGET %BUDGET FY79 ENDING 3.2079 FY20 CHANGE CHANGE Public Information This account includes the activities of the PlO plus the website and newsletter. Legislature &Regulations 55,635 This account is for legislation and regulation tracking labor. Administrative &General -Salaries 365,882 373,708 276,429 This account is used to charge general administrative staff time other than safety and board related activities. Office Supplies &Expenses 47,535 72,258 50,505 2,977 This account is used to cover cell phone use,computer expenses,dues &memberships including LAFCO,industry meetings,office supplies,postage,training, assessment,personnel expenses and safety. Outside Services Employed 62,873 23,098 1 15,050 52,238 This account is used to charge the costs of general counsel to review contracts and agreements,property issues,insurance claims,bid issues,capital contract issues and union matters. Injuries &Damages (Safety)78,647 17,765 1,564 This account includes labor for department safety meetings and training and the organizations weilness program. General Advertising Expenses 23,757 78,601 42,774 This account is used for the cost of publishing ordinances,surplus material,and other legal ad requirements. Misc General Expenses 39,376 47,221 44,301 4,925 13% This account is used to perform board related activities such as preparing meeting minutes,resolutions and ordinances;it is also charged with dues and memberships in electric utility industry organizations. TOTAL $717,413 $687,694 $677,707 ($39,705)-6% GENERAL MAMA (FMPNT $103,768 $95,394 39,649 $102,362 44,722 ($1,407) (10,913) (89,452) -1% -20% -24% 6% 83% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $90,685 ($71,676)-11% 46,256 1,534 3% 411,319 134,889 49% 77,020 26,515 53% 60,049 (55,007)-48% 2,305 742 47% 64,772 21,998 51% 45,817 1,515 3% $798,223 $120,516 18% (17,083) 19,017 -92% 80% ADMINISTRATIVE SERVICES (Water Budget) This section will describe specific water considerations within the FY20 and FY21 Budget.The narrative contained in the electric section of the budget describes the general function and organization of Administrative Services,which also apply to the Water Utility. Beginning in FY09,residential water meters were installed.Over 98%of all customers have a meter and are being billed volumetrically.The remaining 2%will be complete no later than FY24,as they are in areas that will be coordinated with mainline replacements. The residential water meters identify continuous flow including malfunctioning stop-and-drain valves.The District is continuing to advance technology and continues to maintain an automatic customer notification system to contact customers who have possible leaks so that they may quickly identify and correct problems.This continues to be a coordinated implementation of custom software called the “Water Tool”that allows customers to view their own water consumption through Smarthub on the internet to help identify leaks and monitor water conservation efforts.This tool provides customers a visual target to aid in achieving overall water conservation and stewardship. WATER EXPENDiTURE DETAiL Meters/Services Operations Expenses $2,836 $0 $0 ($2,836)-100% This account is used by the meter readers to charge their time to perform meter connects,disconnects and service transfers.It is also used for investigating customer high bill complaints. Customer Account Operations Expense-Salaries 89,731 This account includes the management staff supervision of the customer service and billing functions. This account is used to charge meter reading expenses which includes meter reader labor,overheads,and the hardware and software that supports the meter readers;it also includes their clothing allowance,uniform expenses,vehicle expenses and training. Customer Records &Collections Expense 512,292 375,494 575,604 63,312 12% This account includes the major expenses involved in serving our customers.Included are answering and directing phone calls,answering customer questions,customer account setup expenses,taking and processing customer payments,creating connect,disconnect and transfer paperwork for the crews,creating and reviewing bills, expenses related to the printing and mailing of the bills,account collection expense,billing software and hardware support,standby billing expenses,billing equipment maintenance expenses,printed billing and collection forms,billing postage and customerservice staff training. Provision for Bad Debts This account represents the amount of uncollectable bills for the year. 9,240 0 5,249 (3,991)-43% Administrative &Operations General-Salaries 481,449 433,194 470,287 (11,162)-2% This account includes most of the labor for the administration department except meter reading and customer account related expenses.It includes preparation of the budget and financial statements,accounts payable and payroll,construction accounting,cash management activities,processing the daily mail. Office Supplies &Expenses 77,004 70,517 69,043 (7,961)-10% This account includes bank charges,answering service charges,phone charges,computer and network operating expenses,software maintenance and support for the accounting system,printed forms and material,office equipment leases and equipment maintenance expenses. Outside Services Employed 48,311 47,601 26,398 ($21,914)-45% This account includes any professional services hired from the outside such as audit or accounting services,trust services for our certificates of participation and community facilities districts and arbitrage calculation services for the same. Insurance 148,756 169,274 136,191 (12,565)-8% This account Includes annual insurance premiums for property,liability,umbrella liability,directors &officers liability,difference in conditions,boiler &machinery coverage insurance. Injuries &Damages (Safety)3,079 7,303 13,613 10,534 342% This account Includes costs for safety training,Department of Transportation Drug and Alcohol training,worker’s compensation expenses for employees who have been injured and safety related equipment. TOTAL $1,374,588 $1,202,291 $1,444,943 $70,355 5% ADM1NISTRATIVE SERWCES BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET FY19 ENDING 3.2019 FY20 CHANGE CHANGE Meter Reading Expense 1,889 97,060 1,848 147,619 939 57,888 (950) 65% -50% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $0 $0- 155,783 8,164 6% 967 28 3% 551,863 (23,742)-4% 5,249 0 0% 462,481 (7,806)-2% 71,114 Z071 3% 27,189 792 3% 140,277 4,086 3% 14,211 598 4% $1,429,134 ($15,809)-1% CONSERVATION (Water Budget) This section will describe specific water conservation objectives within the FY20 and FY21 budgets. The District is lacing signilicant change regarding the Legislative and Regulatory environment at State levels.The upcoming ABI 668/55606 mandates will require significant savings from residential and commercial customers to meet the District’s usage limits. The District has been successful at delivering water conservation programs,including an automated process to inform customers electronically if the District detects continuous flow of water;a potential leak situation.This allows the District to proactively contact customers and effectively address potential water waste situations.In addition,staff has continued to support the Water Efficient Toilet Rebate,Water Efficient Toilet Exchange,Customer Water Leak Repair Rebate,and Green Partners Water programs along with the Patricia S.Sutton Conversation Garden. However new programs and campaigns must be developed to drive a further reduction in water use.The priority for FY20 and FY21 will be a combination of data analysis and pilot programs to determine the best end uses and customer segments to target to reduce water use prior to the law taking effect in FY22.Rebates and proactive engagement have been successful with some customers,but the restrictive nature of the upcoming regulations will require a balance of punitive measures as well.The roll out of these programs will require careful coordination with the Public Information Officer to maintain customer satisfaction while still meeting the District’s legal obligations. WATER EXPENDITURE DETAIL CONSERVATION BUDGET PRIOR 12 MOS BUDGET FY19 ENDING 3.2019 FY20 Water Conservation $1 1 1,387 $73,070 $74,252 This account includes water conservation &efficiency programs. Admin &General Salaries 2,177 1,564 8,858 This account includes the administrative salaries to perform various administrative projects. Office Supplies &Expenses 3,970 7,848 6,764 This account includes office supplies,dues,memberships and meeting and training expenses. GeneralAdvertising 293 6,961 7,784 This account includes TDPUD marketing and media activities. Misc General Expense 1,151 4,1 16 3,000 This account includes support of community activities such as sponsorship of the Truckee Home Show,Chamber activities,etc. L$BUDGET CHANGE (37,134) 6,681 2,794 7,491 1,849 %BUDGET CHANGE -33% 307% 70% 2557% 161% TOTAL $118,978 $93,559 BUDGET FY21 $77,282 9,395 6,967 8,018 3,090 $BUDGET CHANGE 3,030 536 203 234 90 %BUDGET CHANGJ 4% 6% 3% 3% 3% $100,659 ($18,319)-15%$104,752 $4,093 4% WATER OPERATIONS The mission for Water Utility Operations and Maintenance is to provide a reliable,high quality water supply and distribution system to meet current and future customer demand in a manner that is safe as well as environmentally and fiscally responsible.The objective will be accomplished through the implementation of the approved Water Master Plan,including the day to day operation of critical facilities and effective long term infrastructure maintenance and replacement programs. The Water Department is organized into three operational groups: 1 .Distribution system operations,maintenance and repairs; 2.Facilities operation,maintenance and repair,including water supply and quality;and 3.System engineering and planning. The FY20 and FY21 budget includes staffing of a Water Utility Director (the Assistant Water Utility Director position will be vacated during the General Manager Transition Plan in 2020),a Water System Engineer,a Water Operations Manager,a Senior Water Quality Technician/Inspector,an Operations Foreman,an Operations Leadman,a Distribution Foreman,a Distribution Leadman,and 7 Water Service Technicians. The Water Department’s operations,distribution,and engineering staff are licensed by the California State Water Resources Control Board for the operation and maintenance of the District’s public water system.This requires staff to participate regularly in continuing education and training to ensure compliance with current Best Management Practices and renewal of Water System Operator certifications.Staff is also trained in water utility safety procedures and OSHA standards on an annual basis.This training ensures the workforce is qualified and productive with an uncompromising emphasis on safety.Embracing these values encourage employee retention, growth,and productivity. The primary challenges for the Water Utility Operations group in FY20 and FY21 will be striking a balance between the continued goal of building capital reserves and effectively managing the District’s long term maintenance and capital improvement needs.Staff will continue to progress toward completing the District’s Water SCADA replacement project,administer annual infrastructure maintenance programs,and rehabilitate aging pumping and storage facilities.An additional challenge continuing to develop in the FY20 and FY21 for public water systems across the State of California will be meeting the expanding regulatory requirements and unfunded mandates associated with the State Water Resource Control Boards Water Use Performance Standards. WATER OPERATIONS Facilities Operations 844,927 1,058,562 819,687 (25,240) This account includes the operation of wells,pump stations,water treatment,water quality,DHS reports and fees and water quality reports.It also includes snow related employee training. PowerSupply 1,244,787 1,297,021 1,319,957 75,176 This account includes the cost of electrical power for the operation of the wells and pump stations. Distribution Operations/PM 670,772 712,619 559,652 (111,120) This account includes the labor and materials to operate the water distribution system. Misc General Operations/PM 351,001 456,410 419,486 68,485 This account includes a variety of items such as environmental compliance,GIS mapping of the water system,SCADA repairs and maintenance,cell phones,pagers, computer hardware and software,clothing allowance,DMV physicals,meals,uniforms,land fill charges,meeting expenses,advertising and testing for new employees, training,and Underground Service Alert marking of utilities and associated fees and costs. Meters/Service Operation 160,258 133,453 486,178 325,920 Maintenance of Operations Sup &Engineering 132,395 170,335 200,51 1 68,116 Used by water manager,superintendent and engineer for supervision,engineering and management of District water system. Maintenance of Sources 744,284 651,963 821,218 76,934 This account includes the maintenance and repair of pumps,motors,electrical control equipment and building repair. Maintenance of Distribution Lines 401,856 274,035 689,858 288,002 This account includes the maintenance and repair of distribution line leaks,broken fire hydrants,etc. Injuries &Damages 80,091 78,377 82,397 2,306 This account includes labor for safety meetings,equipment and training expenses. Maintenance of District Office Building (Div 7)515,352 453,633 426,555 (88,797) TOTAL -$5,478,477 $5,655,896 $6,177,024 698,547 13% WATER EXPENDITURE DETAIL BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET FY19 ENDING 3.2019 FY20 CHANGE CHANGE Operations Supervision &Engineering $351,526 This account is utilized by the water manager,superintendent and engineer for supervision,engineering and management of District water system. $332,760 $369,488 $18,766 6% -3% removal and 6% -17% 20% BUDGET $BUDGET %BUDGET FY21 CHANGE CHANGE $383,476 $31,950 9% 889,761 70,074 9% 1,333,468 13,511 1% 563,891 4,239 1% 442,803 23,317 6% 508,956 22,778 5% 221,355 20,844 10% 844,156 22,938 3% 718,575 28,718 4% 85,537 3,140 4% 440,391 13,836 3% $6,432,370 $255,345 4% 203% 51% 10% 72% 3% -17% INFORMATION TECHNOLOGY (IT) (Water Budget) The Information Technology (IT)Department is headed by the Chief Information Officer I IT Director and also includes the positions Systems Engineer,SCADA Engineer,Cyber Security &Applications Engineer,GIS Coordinator,and Data Analyst &Administrator positions,responsible for networks,servers,communications,operations technology,physical and cyber security,geographic information systems,databases,systems integration,business intelligence,AMI and desktops.Internal IT staff helps reduce outside contractor costs for the District’s data and technology needs,increase IT knowledge of systems security,and provide additional accountability and redundancy. Information Technology is to implement technology strategies that optimize the operations of the District by providing tools that enable the District to operate faster,better,and more cost efficiently,while providing secure access to critical control, mapping,and information systems.Information Technology’s aim is to provide timely,relevant,and accurate information, when and where it is needed,to support sound decisions that improve the quality,efficiency,cost,safety,and environmental footprint of the products and services the District delivers and uses. To achieve the goals and implement the strategies in the IT Master Plan,utilizing the guiding principles below focusing on leadership and excellence through quality of service,responsiveness,innovation,professionalism,and teamwork.These principles require commitment not only from the District’s IT professionals,but from all District employees. I .Consult and advise department heads to drive IT initiatives according to business needs,goals,and objectives,and developing a sound business case before making any new investment. 2.View IT from the perspective of the entire District and not from the perspective of individual departments. 3.Acquire,manage,and use technology resources economically and efficiently through standardized information technology selection and implementation processes. 4.Securely hold and manage technology assets to protect private information. 5.Develop mechanisms and processes to share information easily within the organization and with customers and partners. 6.Understand that availability and access to technology is a given,and design and build systems accordingly. 7.Aggregate,where feasible,to reduce duplication,and employ information technology that is flexible and interoperable to respond quickly and efficiently to changing business needs. 8.Devise strategies to leverage investments in the District’s existing technology. 9.Train the workforce in the skills needed to effectively use IT systems and the information they contain. WATER EXPENDITURE DETAIL BUDGET FY20 $112,333 89,245 38,385 109,494 364,690 and security. 8,908 10,000 15,991 $BUDGET %BUDGET CHANGE CHANGE $15,307 16% (4,036)-4% 23,514 158% (2,183)-2% 103,696 40% (77,667)-57% (17,810)-64% 14,568 1024% BUDGET FY21 $717,822 92,927 39,819 100,873 380,188 9,175 10,300 16,796 BUDGET PRIOR 12 MOS fl INFORMA TION TECHNOLOGY (IT)FY19 ENDiNG 3.2019 Engineering &SCADA Operations $97,032 $118,536 This account is for the operational use of SCADA,Outage Management and Engineering support. GIS/Engineering Operations 93,281 82,415 This account is for the maintenance of software and data that supports engineering and SCADA. Meter Reading 14,871 15,656 This account is for the maintenance of software and data that supports meter technology and AMI. Customer Records 1 1 1,677 99,535 This account is for the maintenance of software and data that supports Customer Information and Customers. Administrative &General IT Ops 260,994 307,782 This account is for the maintenance of hardware and software infrastructure that supports data transport,storage Office Supplies &Expenses 20,574 23,515 This account includes office supplies,dues,memberships,meeting and training expenses. Outside Services Employed 27,870 453 This account is for outside professional services contracted to maintain hardware,software and data. Safety 1,423 3,285 This account includes department labor for safety meetings,safety equipment and training expenses. TOTAL $627,662 $657,177 $BUDGET %BUDGET CHANGE CHANGE $5,490 5% 3,682 4% 1,434 4% (8,622)-8% 75,499 4% 267 3% 300 3% 805 5% $749,045 $121,383 19%$767,900 $18,855 3% PART IV THE FY20 &FY21 BUDGET CAPiTA L IMPRO VEMENT PLA N ELECTRIC UTILITY SOURCE OF FUNDS Operations (OP) Customer Contributions (CC) Facility Fees (FF) Capital Reserve (CR) Vehicle Reserve (VR) Total Source of Funds USE OF FUNDS ELECTRIC OPERATIONS: ELECTRiC UTiLiTY CAPITAL PLAN CC $ CC CC CC CC CC CC CC OP OP CR/OP OP OP OP FF OP CR OP VR 28,330 7,277 94,148 74,800 692,535 46,591 15,035 11,491 482,651 554,254 266,798 705,212 188,402 450,506 970,273 875,153 121,526 87,036 445,000 $6,117,018 29,185 7,498 92,511 77,113 717,792 48,271 15,492 11,838 500,583 574,324 275,011 1,370,095 195,014 466,110 72,428 103,232 1,222,658 79,388 450,000 $6,308,543 SOURCEOFFUNDS I BUDGETFY2O I BUDGETFY21 I OP $3,969,692 $4,209,900 CC 970,208 999,700 FF 970,273 72,428 CR 1,388,324 1,772,658 VR 445,000 450,000 $7,743,497 $7,504,686 SOURCE OF FUNDS I BUDGET FY20 I BUDGET FY21 I $New Services -BWO Commercial Services -BWO Meter Test &Purchase -BWO Purchase &Ins.Transformers -BWO Development Agreements -BWO Flat Fee Construction -BWO Secondary Poles &Conductors -BWO Conduit &Boxes -BWO Line Extension &Upgrades Pole Replacements Various District Projects Electric Master Plan Projects Reclosers &Regs -Field Scada Distribution RepI &Improvement Truckee Substation Rebuild SCADA Reliability Phase 5 &6 Electric Operations Building Electric SCADA Update Vehicles Subtotal BUILDING MAINTENANCE: Upstairs Remodel District Building Exterior Paint Ashpalt and Drainage System for Back 40 Subtotal INFORMA TION TECHNOLOGY (IT): Network Infrastructure Improvement Various IT Supported Department Projects Total Capital Projects &Equipment ELECTRIC UTILITY CAPITAL PLAN $7,743,497 $7,504,686 Subtotal I SOURCEOFFUNDS I BUDGETFY2O I BUDGETFY27 CR $550,000 $550,000 CR 700,000 - CR 350,000 - $7,000,000 $550,000 I SOURCEOFFUNDS I BUDGETFY2O I BUDGETFY21 OP $437,379 $445,160 OP 795,100 200,983 $626,479 $646,143 PART IV THE FY20 &FY21 BUDGET CAPITA L IMPRO VEMENT PLA N WATER UTILITY WATER CAPITAL PLAN SOURCE OF FUNDS Operations (OP) Vehicle Reserve Fund (VR) Operating Reserve Fund (OR) Total Source of Funds USE OF FUNDS t SOURCE OF FUNDS I BUDGET FY20 I BUDGET FY21 . OP $2,252,867 $1,738,954 VR 160,000 270,000 OR -- $2,412,867 $2,008,954 I SOURCE OF FUNDS I BUDGET FY20 I BUDGET FY21 WATER OPERATIONS: OP $ OP OP OP OP OP OP OP OP OP OP VR 999,330 $ 645,133 104,801 59,764 114,244 42,585 41,336 102,292 160,000 $2,269,484 670,110 537,895 76,696 99,746 115,500 46,061 45,081 270,000 $1,861,089 INFORMA TION TECHNOLOGY (lT): Network Infrastructure Improvements OP Various IT Projects OP Facilites Metering Improvements Water SCADA Replacement Project Martis Woods Pump Station Replacement Sanders Well Rehabiliation Control Valve Rehabilitation Project Fiberboard Well Rehabilitation Project Water Tank Coatings Water Production Meter Replacement Southside Well #1 Rehabilitation Airport Well Glenshire Drive Discharge Assembly Vehicles Subtotal 88,355 55,028 $143,383 91,177 56,687 $147,865 Total Capital Projects &Equipment $2,412,867 $2.008.954 PART V THE FY20 &FY21 BUDGET APPENDICES 2020 APPENDIX 1 INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS: Building operation/PM/repair 420,885 Depreciation ofjointly used assets 592,807 TOTAL COSTS $7,013,686 The Electric Utility owns the district headquarters. The Water Utility pays the Electric Utility rent for the use of the District headquarters andjointly used assets. The rent is calculated as 50%of the above costs,which is $506,843 through a monthly rental charge of $42,237. 202 1 APPENDIX 1 INTERDEPARTMENTAL RENT DISTRICT HEADQUARTERS: Building operation/PM/repair 433,606 Depreciation ofjointly used assets 639,467 TOTAL COSTS $7,073,073 The Electric Utility owns the district headquarters. The Water Utility pays the Electric Utility rent for the use of the District headquarters andjointly used assets. The rent is calculated as 50%of the above costs,which is $536,536 through a monthly rental charge of $44,777. APPENDIX 2 BUDGETED POSITIONS BY DEPARTMENT IPOSITION BUDGET FY20 BUDGET FVij ADMINISTRATION General Manager (Januaryto July)$177,181 $278,512 General Manager (July to December)135,200 - Public Information &Strategic Affairs Director 181,228 186,665 Executive Secretary I 00,913 103,940 Contract Administrator -most dollars in cc6 and cc7 88,073 90,715 Record Coordinator/Tech 60,736 65,686 Administrative Tech -67,621 $743,332 $793,139 ADMINISTRATIVE SERVICES Business Operations Manager,HR &Risk Manager $145,465 $157,321 Finance &Accounting Manager 160,368 165,179 Senior Accountant/Accounting Analyst 122,660 126,339 Accounting/Computer Operations Supervisor 88,073 90,715 Work Order Accounting Supervisor 88,073 79,880 Work Order Succession (Jun -Dec 2020,transitioned 202’36,930 - Work Order Clerk 72,413 74,585 Payroll and Accounts Payable Clerk 72,413 74,585 Buyer/Clerk 76,076 78,358 Warehouse/Utility Worker 74,212 76,438 Customer Services Manager 125,661 129,430 Customer Billing and CSR Supervisor 81,819 84,273 Billing Clerk 72,413 74,585 Conservation Specialist 76,034 78,316 Administrative/Community Outreach Coordinator 76,034 - Customer Service Representatives (4)266,277 287,980 Overtime 22,488 23209 $1,657,412 $1,601,193 CONSERVATION Program Manager,CSR &Conservation $105,961 $114,598 $105,961 $114,598 ELECTRIC OPERATIONS Electric Utility Director $214,918 $232,434 Electric Operations Manager 176,812 182,116 Assistant Electric Operations Manager 152,741 165,189 Electric Engineering Manager 176,815 182,119 Electric Engineers (2)291,275 307,147 APPENDIX 2 BUDGETED POSITIONS BY DEPARTMENT IPOSITION BUDGET FY20 BUDGET FY2II Foreman,Power Services (2)253,876 261,493 Foreman,Service Crew (1)126,938 130,747 Foreman,Electricians(1)I 26,938 130,747 Electrician/Meter Technician (4)469,735 483,829 Substation Lineman/Inspector 126,938 130,747 Lead Lineman 120,896 124,523 Journeyman Linemen (7)826,018 850,799 Apprentice Linemen (3)269,701 286,428 Standby/Overtime 300,112 309,116 $3,633,714 $3,777,435 ITIGIS llDirector/CIO $194,896 $200,743 IT/SCADAEngineer 134,846 138,892 GiSCoordinator 122,660 126,339 Network &System Administrator 128,804 132,669 Data Analyst &Administrator 105,968 114,604 IT Security &Applications Manager 145,459 157,312 $832,632 $870,559 WATER OPERATIONS Water Utility Director $160,372 $165,183 Water System Engineer 181 228 186,665 Water Superintendent 58,411 126,341 Water Quality Inspector 115,132 118,587 Water Foremen (2)230,264 237,174 WaterLeadmen(2)203,915 210,034 Water Service Technicians -(5)473,574 487,781 Water Service Technicians -in Training (2)167,729 176,975 Facilities Maintenance Coordinator 85,910 88,487 Mechanic 107,035 110,246 Standby/Overtime 194,742 200,585 $1 978,313 $2,108,059 TOTAL $8,951 ,365 $9,264,983 VALUE OF BENEFITS 2020 APPENDIX 3 LABOR OVERHEAD Medical /Dental insurance Vision insurance Long term disability Life insurance Longevity F/CA Fed Med Worker’s compensation insurance Pension Other Post Employment Benefits Value of non-productive labor (vacation,sick leave,holiday) $2,666,384 65,564 38,054 62,782 77,240 556,473 730,743 300,082 2,224,677 7 70,000 7,264,966 TOTAL VALUE OF BENEFITS PRODUCTIVE LABOR Recommended labor (Appendix 2) Less value of non-productive labor $7,436,358 $8,957,365 (7,264,966) TOTAL PRODUCTIVE LABOR $7686399 PA YROLL 0 VERHEAD (Value of benefits/productive labor) 96.75% VALUE OF BENEFITS 2021 APPENDIX 3 LABOR OVERHEAD Medical /Dental insurance Vision insurance Long term disability Life insurance Longevity FICA Fed Med Worker’s compensation insurance Pension Other Post Employment Benefits Value of non-productive labor (vacation,sick leave,holiday) $2,719,708 67,537 39,399 64,392 79,570 575,977 734,690 308,447 2,525,770 7 73,300 7,256,225 TOTAL VALUE OF BENEFITS PRODUCTIVE LABOR Recommended labor (Appendix 2) Less value of non-productive labor $7,824,343 $9,264,983 (7,256,225) TOTAL PRODUCTIVE LABOR $8,008,758 PA YROLL 0 VERHEAD (Value of benefits/productive labor) 9170% 2020 APPENDIX 4 TRANSPORTA TION OVERHEAD This appendix assumes that the cost of operating,maintaining and replacing District vehicles and equipment will be recognized as an overhead charged against direct labor that uses the vehicles. TRANSPORTATION &EQUIPMENT EXPENSE Vehicle operation,repair,fuels &misc expenses $560,637 Insurance 28,750 Replacement (depreciation expense)369,727 TOTAL TRANSPORTATION EXPENSE $958,502 DIRECT LABOR HOURS General Manager 3,927 Administrative Services 785 Conservation 334 Electric Operations 44,255 Water Operations 33,625 Power Supply 2,320 TOTAL DIRECT LABOR HOURS 84,646 TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST $71.32 2021 APPENDIX 4 TRANSPORTA TION OVERHEAD This appendix assumes that the cost of operating,maintaining and replacing District vehicles and equipment will be recognized as an overhead charged against direct labor that uses the vehicles. TRANSPORTA TION &EQUIPMENT EXPENSE Vehicle operation,repair,fuels &misc expenses $578,545 Insurance 28,995 Replacement (depreciation expense)380,872 TOTAL TRANSPORTATION EXPENSE $988,352 DIRECT LABOR HOURS General Manager 5,445 Administrative Services 785 Conservation 334 Electric Operations 44,255 Water Operations 34,595 Power Supply 2,320 TOTAL DIRECT LABOR HOURS 87,734 TRANSPORTA TIONIEQUIPMENT OVERHEAD PER HOUR COST $17.34 2020 APPENDIX 5 ADMINISTRA TIVE OVERHEAD COMMON SUPPL V COSTS: Purchasing/Warehousing of Common Supplies Labor Accounts Payable Overhead: Labor Administrative Warehousing Operating Costs Utilities &Building Maintenance Miscellaneous (insurance) Subtotal $736,479 43,792 723,800 6,707 370,772 25,005 6,500 37,505 TOTAL PURCHASING/WAREHOUSING/COMMON SUPPLIES $342,276 TOTAL PRODUCTIVE LABOR ADMINISTRA T1VE 0 VERHEAD $7,686,399 4.45% 2021 APPENDIX 5 ADMINISTRA TIVE OVERHEAD COMMON SUPPLY COSTS: Purchasing/Warehousing of Common Supplies Labor Accounts Payable Overhead: Labor Administrative Warehousing Operating Costs Utilities &Building Maintenance Miscellaneous (insurance) Subtotal $740,577 45,706 727,578 6,902 320,703 25,760 6,695 32,455 TOTAL PURCHASING/WAREHOUSING/COMMON SUPPLIES TOTAL PRODUCTIVE LABOR ADMINISTRA TIVE 0 VERHEAD $352,558 $8,008,758 4.40% 2020 APPENDIX 6 CONSTRUCTION OVERHEAD General direction and general construction costs from budget: Electric Operations $737,583 Water Operations 93,045 Total $230,629 Determine capitalized labor as a percent of total labor: Capitalized Labor =$7,456,779 =28.45% Total Electric &Water Labor $5,720,237 Determine construction overhead to be capitalized: Total General direction &construction costs $230,629 %of labor to be capitalized 28.45% General direction &construction costs to capitalize $65,677 Construction accounting costs to capitalize 785,227 $250,844 Calculate construction overhead to be applied to capital improvements: Capital Overhead =$250,844 =7 7.22% Capital Labor $7,456,779 CONSTRUCTION OVERHEAD =1 7.22% 2021 APPENDIX 6 CONSTRUCTION OVERHEAD General direction and general construction costs from budget: Electric Operations $143,307 Water Operations I 14,409 Total $257,716 Determine capitalized labor as a percent of total labor: Capitalized Labor =$1,526,321 28.62% Total Electric &Water Labor $5,333,595 Determine construction overhead to be capitalized: Total General direction &construction costs $257,716 %oflabor to be capitalized 28.62% General direction &construction costs to capitalize $73,751 Construction accounting costs to capitalize 184,880 $258,630 Calculate construction overhead to be applied to capital improvements: Capital Overhead $258,630 16.94% Capital Labor $1,526,321 CONSTRUCTION OVERHEAD 16.94% APPENDIX 8 WA TER DEBT SCHEDULE Principal and Interest Payments Pipeline Pipeline Pipeline DWR-SRF DWR COP COP COP DONNER LAKE PROP 55 YEAR Rates FE Assmt Assmt Rates TOTAL 2020 7,265,887 357,677 97,973 800,852 306,487 2,828,804 2027 7,252,4 72 356,7 79 96,276 800,852 153,24 7 2,658,899 2022 576,869 358,008 99,060 800,852 1,834,790 2023 577,228 358,672 97,837 800,852 1,834,590 2024 573,008 359,233 700,297 800,852 1,833,390 2025 576,529 360,884 97,925 800,852 1,836,790 2026 573,196 359,005 99,736 7,037,938 2027 575,58 7 359,806 97,750 1,032,538 2028 574,322 358,474 99,742 7,037,938 2029 570,555 360,707 700,444 7,037,100 2030 575,893 359,747 97,360 7,032,400 2037 574,705 359,524 98,427 7,032,650 2032 573,333 357,373 100,704 7,030,750 2033 575,77 7 359,424 70 7,490 7,036,625 2034 574,484 359,309 97,207 7,037,000 2035 306,800 306,800 9,989,706 5,689,499 1,480,360 4,805,7 72 459,727 22,424,398 Loan Descriptions: Pipeline COP -Water system improvements and Donner Lake financing DWR/SRF -Replacement of Donner Lake Water System DWR/Prop 55 -Water system improvement projects Debt Payments: The Water debt payments are funded by development (FF),current customers (rates)and special assessi The method ofpayment for the water debt is listed in the column headings. APPENDIX 9 VEHICLE REPLACEMENT SCHEDULE UNIT #DESCRIPTION DEPARTMENT AGE REPLACEMENT 287 93 Fleming Spool Trailer Electric 26 2079 203 06 Chevy Silverado 7500 Electric 73 2079 369 05 Freight liner/Mudd Dog Water 74 2079 580 07 Trackless Snowblower Support Services 78 2020 200 06 Chevy Silverado Electric 73 2020 228 08 GMC 2500HD Electric 7 7 2020 New 2500 Truck Electric 0 2020 373 98 Dump Trailer Water 27 2020 307 06 Chevy Silverado 3500 Water 73 2020 207 08 GMC 3500 HD Electric 7 7 2020 503 06 Chevy Silverado 3500 Support Sen/ices 73 2020 324 7 7 Ford F-550 Water 8 2020 276 07 Int’l SC-45 Bucket Truck 4WD Electric 72 2027 378 89 Backhoe Transport Trailer Water 30 2027 343 08 Chevy Silverado 3500 Water 7 7 2027 323 7 7 Ford F-550 Water 8 2027 325 7 7 Ford F-550 Water 8 2027 379 O6HalmarkLeakTrailer Water 73 2027 206 70 Chivy Silverado 2500 HD Electric 9 2022 507 07 Chevy Silverado 7500 Support Services 72 2022 736 08 Chevy Colorado Electric 7 7 2022 735 O7ChevyColorado Admin 72 2022 706 73 Ford Escape Admin 6 2023 295 08 John Deer 35D Electric 7 7 2023 306 73 GMC Sierra 2500hd Water 6 2023 307 73 GMC Sierra 2500hd Water 6 2023 374 08 John Deer 470 J Water 7 7 2023 288 04 Underground wire puiler/tugger Electric 75 2024 289 04 SnowCat Electric 75 2024 707 l4JeepCherokee Admin 5 2024 723 l4ChevyVan Admin 5 2024 709 75 Jeep Cherokee Admin 4 2025 7 70 75 Jeep Cherokee Admin 4 2025 207 73 GMC Sierra 2500HD Electric 6 2025 230 78 Chevrolet K7500 Electric 7 2025 APPENDIX 9 VEHICLE REPLACEMENT SCHEDULE UNIT #DESCRIPTION DEPARTMENT AGE REPLACEMENT 237 78 Chevrolet K7500 Electric 7 2025 708 l5JeepCherokee Admin 4 2025 7 7 7 75 Jeep Cherokee Admin 4 2025 320 70 International Dump Truck Water 9 2025 205 06 Chevy Silverado 3500 Electric 73 2026 210 71 International/Altec 3050A Electric 8 2026 326 76 Ford F-550 Water 3 2026 399 l2NewHolland Water 7 2027 283 72 Small Spool Trailer Electric 47 2028 208 78 Chevy 2500 Electric 1 2028 308 78 Chevy K7500 Water 1 2028 309 78 Chevy K7500 Water 1 2028 310 l8ChevyKl500 Water 7 2028 330 73 International Dump Truck Water 6 2028 285 74 Overhead Wire Puiler Electric 5 2029 290 04 Traller,Snowcat Electric 75 2029 297 04 Dump Trailer Electric 75 2029 727 79 Jeep Grand Cherokee Electric 0 2029 233 19 Chevrolet K2500 Electric 0 2029 235 79 Chevrolet K2500 Electric 0 2029 237 19 Chevrolet K2500 Electric 0 2029 223 74 Int’l 7500 Bucket Trucke 4WD Electric 5 2029 389 74 EH Wachs Trailer Water 5 2029 375 75 John Deere 4 70 L Water 4 2030 360 15 Caterpillar 926M Water 4 2030 292 06 Spool Trailer Electric 73 2031 279 16 Ford Mini Bucket F550 Electric 3 2031 225 16 International/Navistar 7400 Electric 3 2031 395 16 Compact Excavator Caterplllar305.5E2 Water 3 2031 385 Y6HALLMARKTraIIer Water 3 2031 293 06 Pole Trailer Electric 13 2032