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Home My WebLink About16 End-of-Cycle Budget ReviewAgendaItem#I16:TRUCKEEDONNERPublicUtilityDistrictACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:March04,2020Subject:End-of-CycleBudgetReviewa)FY19End-of-YearFinancialResultsb)ConsiderationofaEnd-of-YearTransfer1.WHYTHISMATTERISBEFORETHEBOARDThisisayear-endreviewwiththeBoardofthefinancialresultsasofDecember31,2019.Districtcoderequiresasemiannualreviewofthebudgetedrevenuesandexpenditurescomparedtoactualrevenuesandexpenditures.Thisistheend-of-cyclereviewfortheFYi8andFYi9BoardapprovedBudget.2.HISTORYStaffreviewedthemid-yearFY19budgettoactualfinancialperlormanceinaworkshopwiththeBoardonAugust7,2019.Thebudgettoactualreportisaconsolidatedreportofactualactivityforrevenues,operationalexpenses,andcapitalimprovementprojectsfundedbyratesandreserves.Thecurrentreportingexcludesaccrualentriesinrevenues,depreciation,amortization,andrevenueandexpensesassociatedwithcontributedcapitalprojects.3.NEWINFORMATIONPreliminaryFY19year-endfinancialsummaryresultsareincludedinAttachment1andAttachment2.BoththeElectricandWaterutilitiesreportedpositivenetoperatinginflows.TheElectricUtilityhadnetoperatinginflowof$1.1M.TheWaterUtilityhadanetoperatinginflowof$O.8M.ElectricUtilityAttachment1isthepreliminaryBudgetvs.ActualRevenueandExpendituressummaryreportfortheElectricUtilityforFY19.RevenuesexceededbudgetexpectationsinFY19by4%.Thisincludedaplannedrateincreaseof3%forFY19.ExpensesfortheElectricUtilitywere9%belowbudgetexpectations;theprimarydriverbeingthecostofpowerwhichcamein16%underbudgetinFYi9.TheElectricUtilityforFY19investedjustover$7.3Mincapitalexpendituresbeingfundedfromoperations,thecapitalreserve,andthevehiclereserve,comparedtoa budgetofjustover$4.8M.TheexcessinspendingwasplannedaswithintheFY18andFY19BudgettheElectricUtilityunderspentinCapitalExpendituresinFY18andhadanoverallnetcashsurplusofover$3M.TheElectricDepartmentFY19CapitalExpendituresincluded:routineDistributionReplacementandImprovementProjects;theSCADAReliabilityPhase5Project,andassociatedOverheadPoleReplacementProjectinTahoeDonner;theEnvisionDPRProject;andthecompletionoftheElectricMeterReplacementProject.VehiclespurchasedinFY19included:thereplacementoftwoservicetrucks;thepurchaseoftheGeneralManager’svehicle;thereplacementofthethreereelwiretrailer;andthereplacementofthesnowblowerusedforsubstations.TotalNetOperationsFundedCashinflowforFY19isjustover$1.1M.Staffisrecommendingtransferring$1MtotheElectricUtilityCapitalReserveFundwhichhasbeendrawndownduetotheElectricMeterReplacementProject.ThistransferwouldreplenishthatfundforfuturecapitalexpendituresinalignmentwiththeBoard’scashandreserveQoalsperDistrictCode.WaterUtilityAttachment2isthepreliminaryBudgetvs.ActualRevenueandExpendituressummaryreportfortheWaterUtilityforFY19.RevenuesexceededbudgetexpectationsinFY19by1%.Thisincludedaplannedrateincreaseof3%forFY19.ExpensesfortheWaterUtilitywereinexcessofbudgetby6%,theprimarydriverwasthecontinuedincreaseinoperatingcostsininsurance,thecostofpumpingwater,maintenancematerialcostsandregulatorycostsandfees.TheWaterUtilityforFY19investedjustover$1.8Mincapitalexpendituresbeingfundedfromoperations,theoperatingreservefund,andthevehiclereservecomparedtoabudgetofjustover$3.2M.ThiswasplannedastheDistrictisdeferringdoingsmallerpipelinereplacementsforaneededlargeprojectinFY22.ThemajorfocusfortheWaterUtilityforCapitalExpendituresinFY19included:theAclaraMeterTransmittingUnitReplacementProject;upgradingtheDataCollectorUnits;theOldGreenwoodWellRepairs;andthecontinuationoftheSCADAReplacementProject.VehiclereplacementsfortheWaterUtilityinFY19includedthenewLoaderandBlower,andtheVac-ConHydroExcavatorreplacement.TotalNetOperationsFundedCashinflowfortheWaterUtilityinFY19isjustover$O.8M.StaffisnotrecommendinganytransfersatFY19yearendfortheWaterUtility.Attachment3showsthebeginningbalancesofthevariousreservefundsandtheendingbalancesfortheWaterUtility.FacilitiesTheDistrictestablishesandcollectsfacilitiesfeesonnewdevelopmentforelectricandwatersystemimprovementsattributabletonewdevelopmentsinaccordancewiththeElectricandWaterMasterPlans.Attachment3reportsthestatusoftherestrictedFacilitiesFeesFundforeachUtilityrespectivelyasoftheendofFYi9.TheElectricUtilityfacilitiesfeecollectionsremainedstronginFY19withreceiptsofjustunder$317Kcomparedto$271KinFY18.TheElectricUtilitydidnothaveanybudgeted expendituresforfacilitiesfeesinFY19buthasplanneduseoffundsintheapprovedFY20andFY21Budget.TheWaterUtilityfacilityfeecollectioninFYi9alsoremainedverystrongwithreceiptsof$921Kcomparedto$806KinFY18duetocontinueddevelopmentandnewconstructionwithintheDistrict.TheDistricthasbeenabletoutilizefacilitiesleesforqualifyingdebtservicefortheWaterUtilityonanannualbasis.InFYi9facilitiesfeeswereutilizedforthePipelineCOPdebtpayment.TheDistrictisobligatedtoutilizefacilitiesfeescollectedwithina5yearperiod,furthermore,meetingthisrequirement.4.FISCALIMPACTAttachment4showsthebeginningbalancesofthevariousreservefundsandtheendingbalancesaftertheproposedtransferfortheElectricUtility.AlsoincludedarethecashandreservegoalsinalignmentwithDistrictCodeasapprovedinFY19.OverallfiscalimpactisinalignmentwiththeBoardapprovedFYi8andFYi9Budget.5.RECOMMENDATION1.Acceptthisreport.2.AuthorizetheTransfer$1,000,000fromtheElectricGeneralFundtotheElectricCapitalReplacementReserve./ReginaWiseMichaelD.HolleyFinance&AccountingManagerGeneralManager TruckeeDonnerPublicUtilityDistrictBudgetvs.ActualRevenue&ExpendituresFiscalYearEndingDecember31,2019ELECTRICDEPARTMENTATTACHMENT1PRELIMINARYFYi9BudgetVarianceFY19FavorableActual(Unfavorable)¾OPERATINGREVENUEResidentialCommercialInterdept.Sales&RentStandbyJointPoleOtherTotalOperatingRevenueOPERATINGEXPENSEBoardofDirectorsGeneralManagementAdministrativeSvcs.PublicInfo.&Consrv.OperationsIT/GISBuildingMaintenancePurchasePowerTotalOperatingExpenseNETOPERATINGINCOMEOTHERINCOME(EXPENDITURE)InvestmentIncome(Loss)TransfertoRateReserveTransferstoVehicleReserveDebtPaymentTransfersfromCap&TradeAB32ReserveTotalOtherIncome(Expenditure)CAPITALEXPENDITURESFUNDEDBYOPERATIONSNETOPERATIONSFUNDEDCASHINFLOW(OUTFLOW)148,344202,103(53,759)801,281672,318128,9631,466,2211,415,50850,713938,112826,048112,0644,763,5034,999,551(236,048)701,955987,706(285,751)515,352380,160135,19212,784,88610,754,8982,029,98822,119,65420,238,2931,881,3613,278,9036,066,1902,787,287127,500569,009441,509(157,271)(157,271)-(202,239)(202,239)-(552,000)(552,000)-1,126,3301,186,32059,990342,320843,819501,4993,621,2235,781,145(2,159,922)-1,128,8651,128,865CAPITALEXPENDITURESFUNDEDBYRESERVESCapitalReplacement(AMI)VehicleReserveType$$13,347,3139,821,8051,779,33820,884177,000252,21725,398,557$14,140,04110,099,6651,679,54119,260106,082259,89326,304,483792,728277,860(99,797)(1,624)(70,918)7,676905,9266%3%-6%-8%-40%3%4%-36%16%3%12%-5%-41%26%16%9%346%0%0%0%5%147%1,205,7751,205,775--352,911(352,911)12057751558686(352911) TruckeeDonnerPublicUtilityDistrictBudgetvs.ActualRevenue&ExpendituresFiscalYearEndingDecember31,2019WATERDEPARTMENTATTACHMENT2PRELIMINARYVarianceTypeOPERATINGREVENUEResidentialCommercialStandby&FireProtectionOtherTotalOperatingRevenueOPERATINGEXPENSEBoardofDirectorsGeneralManagementAdministrativeSvcs.PublicInfo.&Consrv.OperationsIT/GISInterdepartmentalRentTotalOperatingExpenseNETOPERATINGINCOMEOTHERINCOME(EXPENDITURE)InvestmentIncome(Loss)TransferstoVehicleReserveTransfer(to)fromOperating&MeterReserveFacilityFundReimbursementforFacilityFeeDebtDebtServiceTotalOtherIncome(Expenditure)CAPITALEXPENDITURESFUNDEDBYOPERATIONSNETOPERATIONSFUNDEDCASHINFLOW(OUTFLOW)CAPITALEXPENDITURESFUNDEDBYRESERVES-36%16%-2%26%-9%-34%13%-6%152%0%-111%0%0%FYi9FYi9BudgetActual(Unfavorable)¾Favorable$11,060,382S11,215,100$154,7181%1,623,9461,578,067(45,879)-3%129,437118,320(11,117)-9%324,099295,940(28,159)-9%13,137,86413,207,42669,5621%148,344201,844(53,499)717,413601,074116,3391,374,5881,395,465(20,876)118,97888,17530,8034,963,1265,421,001(457,875)627,662842,297(214,635)542,329474,00468,3258,492,4419,023,858(531,418)4,645,4234,183,567(461,856)77,633195,392117,759(169,620)(169,620)0176,319(20,000)(196,319)355,324355,3240(2,294,874)(2,294,874)0(1,855,218)(1,933,778)(78,560)2,790,2051,445,0661,345,1390804,723804,723OperatingReserveVehicleReserveMeterReserve48%429,838373,344428,835(373,344)1,003429,838802,179(372,341)Total ATTACHMENT 3 FACILITIES FEES ANNUAL STATUS REPORT Updated as of O2O5.2O ELECTRIC FACILITIES FEES:7.0.136.90 Beginning Balance Facilities tees collected during year Interest earnings during period Project expenditures during period Ending Balance 2015 2016 2017 2018 2019 $205,185.65 $0.00 $153,619.20 $301,092.59 $581,669.94 198,082.00 152,970.50 144,485.00 271,042.25 316,906.75 922.76 648.70 2,988.39 9,535.10 20,337.05 (404,190.41)0.00 0.00 0.00 0.00 $0.00 $1 53,61 9.20 $301 092.59 $581 669.94 $918,913.74 Ended 12/31/2019 $205,185.65 1,083,486.50 34,432.00 (404,190.41) $918,913.74 Total amount available-See NOTE 1,117,918.50 Less:Amountcollected overlast5 years (199,004.76)Amount greater than 5 years old-NONE WATER FACILITIES FEES:2.0.136.25 &2.0.136.90 NOTE:It “Total amount available’is greater than “Amount collected over the last 5 years,then the District has tacilities tees on hand that are greater than 5 years old. It the amount ot facilities fees on hand is greater than 5 years old,the District would have to either refund the money to customers or the Board would have to issue a finding that the money greater than 5 years old was being held to pay for a specific project.This report shows that the District does not have any electric or water facility fees on hand that are greater than 5 years old. 2015 2016 2017 2018 2019 Beginning Balance $452,032.64 $514,264.20 $453,615.48 $370,773.27 $834,809.96 Facilities fees collected during period 567,524.95 440,684.46 415,593.10 806,030.72 921,392.12 Interest earnings during period 3,739.61 5,418.82 7,792.69 14,289.97 29,828.00 Debt Payments -facilities fees share (509,033.00)(506,752.00)(506,228.00)(356,284.00)(355,324.00) Ending Balance $514,264.20 $453,615.48 $370,773.27 $834,809.96 $1,430,706.08 Summary 5 Years Ended 12/31/2019 $452,032.64 3,151,225.35 61,069.09 (2,233,621.00) $1 430,706.08 Total amount available-See NOTE 3,212,294.44 Less:Amount collected over last 5 years (1 781 588.36)Amount greater than 5 years old-NONE ATTACHMENT 4 PRELIMINARY FY19 YEAR-END RESERVE BALANCES 1/1/2019 Balance FYi 9 Activity 12/31/2019 Balance Proposed Transfers Adjusted Balance Goal ELECTRIC UTILITY $7,912,000 5,584,000 3,562,000 521,000 2,011,000 19,590,000 1,963,000 286,000 (1,136,000) (118,000) 42,000 1,037,000 9,875,000 5,870,000 2,426,000 403,000 2,053,000 20,627,000 8,875,000 5,870,000 3,426,000 403,000 2,053,000 20,627,000 The Facilities Fee Reserve and Cap and Trade reserve are excluded from this report. WATER UTILITY General Fund Operating Reserve Vehicle Reserve Deterred Liabilites Reserve Total Reserves Note: $1,520,000 1,816,000 235,493 100,000 3,671,493 $1,063,000 $ (217,000) (235,493) 5,000 615,507 $ 2,583,000 1,599,000 $2,583,000 1,599,000 $General Fund Rate Reserve Capital Reserve Vehicle Reserve Deferred Liabilites Reserve Total Reserves Note: $$(1,000,000)$ 1,000,000 2,000,000 $$$$-$$23,000,000 $11,000,000 6,000,000 4,000,000 105,000 -105,000 $$4,287,000 $-$4,287,000 I 4,000,000 4,000,000 800,000 $8,800,000 The Facilities Fee Reserve was excluded from this report.