HomeMy WebLinkAbout10 Budget Public Hearing
AGENDA ITEM # 10
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MEETING DATE: November 3, 2021
TO: Board of Directors
FROM: Michael R. Salmon, Chief Financial Officer
SUBJECT: Conduct a Public Hearing regarding Budget FY2022 & FY2023 and
Consideration of Adopting Resolution 2021-21 approving the FY2022
and FY2023 Budget
APPROVED BY______________________________
Brian C. Wright, General Manager
RECOMMENDATION:
A) Conduct a public hearing on the FY22 and FY23 Budget; and
B) Adopt Resolution 2021-21 approving the FY2022 and FY2023 budget as recommended
by staff.
DISCUSSION:
For over a decade, the District has prepared the budget on a biennial basis. Following three
budget workshops, staff has prepared presentation and documents for a Public Hearing and
recommendation for approval of the District’s FY2022-23 Budget. The FY2022-23 budget has
been developed utilizing the current budget, actual and forecast trends, as well as the strategic
plan as the foundational basis.
The schedule for review and approval of the proposed FY2022-23 Budget is as follows:
August 18, 2021 – Workshop #1 - Discussion of Goals, Objectives, and Key Assumptions;
October 6, 2021 – Workshop #2 – Purchased Power Plan, Operating & Capital Budgets for
Electric and Water Utilities, and Financial Master Plan drafts; Public Hearing Notice of
11/3/2021 Public Hearing on Budget 2022 & 2023 Approval
October 20, 2021– Workshop #3 – Operating and Capital Budgets for all support services,
Revenue/Rates, Reserves & Financial Master Plan drafts
November 3, 2021 (tonight) – Public Hearing and Action Item – Review and approval of
Budget 2022 & 2023
District’s Mission
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The Mission of the Truckee Donner Public Utility District is to provide reliable, high quality utility
and customer services while managing District resources in a safe, open, responsible, and
environmentally sound manner at the lowest practical cost.
Values of the District
Safety – Safety is our way
Safety is our first priority. We are committed to the health and safety of our
employees, customers, and community through the continuous practice of
prevention, education, and awareness.
Communication – Send and receive
Foster positive engagement by creating a strong communicative environment that
includes; active listening, transparency, clear, concise, and the timely transmission
of information, with empathy and respect. This also includes providing and receiving
honest feedback.
Integrity – Honest and ethical
Highest quality service to the public and employees, utilizing honest and ethics as
our base principles.
Accountability – Own it
A strong performing team with the obligation and willingness to accept responsibility
for our actions, maintaining a sense of humility and inclusiveness.
Timeliness – Meet our goals and commitments
A highly effective agency and responsive organization meeting goals and
expectations in a timely manner.
Work Life Balance – Work hard, play hard
We value every employee and foster a healthy work life balance culture, allowing
employees to bring their best selves to work every day.
Strategic Plan
In May 2021, the Board adopted a Strategic Plan. The plan included four key initiatives as follows:
Undergrounding of Overhead Power lines
100% Clean Renewable Energy
Local Clean Power Generation
Community Broadband
Resources must be committed to these initiatives.
Reference Documents
The following links provide useful financial information:
o October 20, 2021 – Workshop #3 – 2nd Draft Electric and Water Budget Drafts, Operating
Expenses, Capital Expenditures & Debt, Personnel, Reserves, Financial Master Plan
Workshop #3 starts on Page 7 of PDF
o October 6, 2021 – Workshop #2 – 1st Draft Purchased Power, Electric and Water Budget
Drafts, Operating Expenses, Capital Expenditures & Debt, Personnel, Reserves, Financial
Master Plan Workshop #2 starts on Page 35 of PDF
o August 18, 2021 – Workshop #1 - Discussion of Goals, Objectives, and Key Assumptions
Workshop #1 starts on Page 54 of PDF
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o Strategic Plan 2021 – 2024
o 2020 Comprehensive Annual Financial Report
o 2020 and 2021 Budget (Current Budget)
o District Code Title 3 Finance and Accounting
Agenda detail for 2022 & 2023 Budget is presented below:
A) Key change since 10/20/2021 Workshop #3 Draft
B) Electric Utility Budget Draft (Attachment 1)
C) Water Utility Budget Draft (Attachment 2)
D) Capital Expenditures / Capital Improvement Plan (Attachment 3)
E) Overheads Rent and Debt (Attachment 4)
F) Personnel and Full Time Equivalents (Attachment 5)
G) Financial Master Plan, 10 Years, 2022 to 2031 (Attachment 6)
Resolution 2021-21 approving Budget FY22 and FY23 – Attachment 7
A) Key Changes since 10/20/2021 Workshop #3 Draft
Staff has continued to refine draft budget and notable changes since October 20 th. 2021 draft are
as follows:
Electric –
Addition of Troubleman position. This is an incremental +1.0 FTE to prior draft. Including
overhead impacts this changed added $221,000 to Electric Utility operating expenses in
Budget 2022 and $228,000 to Budget 2023.
Miscellaneous changes to operating expenses, primarily related to overhead calculations
and distribution of overhead across the two utilities.
Prioritizing operating and rate reserves, made adjustments to capital reserve funding
between years for impact of above changes.
Total Operating Expenses of $26.9m increased $220,000.
Water –
Miscellaneous changes to operating expenses, primarily related to overhead calculations
and distribution of overhead across the two utilities.
Total Operating Expenses of $11.1m increased $23,000.
B) Electric Utility Budget
The current draft of Budget 2022 (B22) and Budget 2023 (B23) is provided as Attachment 1.
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Operating Expenses
Include the annual operating expenses associated with providing and maintaining electrical
service. Operating Expenses B22 of $27.1 million are $2.96m or 12% greater than B21.
The primary drivers of this cost increase are as follows ($ in thousands):
1) $594 – Purchased Power, as detailed previously in section A)
2) $500 – Wildfire Defensible Space increase from $1.03 B21 to $1.53 B22
3) $234 – Rate of Pay Increase impact of assumption of 4.5%, based on current MOU and
Federal Bureau of Labor Statistics (BLS) related specifications.
a. The BLS CPI-W for August was 4.9%, the MOU maximum cap is 5.0%. Next
update and MOU specified CPI-W is the October figure. (includes overhead,
across all departments)
4) $221 – addition of one FTE, Troubleman position
5) $104 – Impact of Rate of Pay increases in 2020 & 2021 greater than Budget 2020 &
2021
6) $160 – Strategic Plan Initiatives funding to continue momentum (Dept. BoD)
7) $ 75 – other legal costs estimate (Dept. BoD)
8) $150 – additional FTE, 50% Electric, Human Resources Director (Dept. Gen.Mgmt)
9) $99 – additional FTE, 50% Electric, Risk & Compliance Coordinator (Dept. Gen.Mgmt)
10) $94 – additional FTE, ~50% Electric, Vehicle Mechanic (cost charged through
Transportation Overhead, across all Depts.)
11) $87 – additional FTE, 50% Electric, Communications Specialist (Dept. Gen.Mgmt)
12) $30 – Grant application/writing professional services (Dept. Gen.Mgmt)
13) $28 – Laserfiche & Micro imaging services (Dept. Gen.Mgmt)
14) $48 – safety programs, costs increases $23 and new SDS subscription $25 (Dept.
ELOps)
15) $30 – Avian program development (Dept. ELOps)
16) $15 – Survey services (Dept. Gen.Mgmt)
17) ($264) – transfer 1 FTE, Electrician to Water Operations (Dept. ELOps)
18) ($132) – drop ½ FTE, Electrician 2nd half of 2022 (Dept. ELOps)
19) $64 – Compensation Study contingency, including overhead (across all departments)
20) $321 General Services organizational structure changes, add 2 FTEs to adequately
service facilities throughout the District, this cost on Electric is recovered partially via
Rent charged to Water Division (lower by 20k than prior draft)
21) $105 – Vegetation Hazard analysis, shifted from B23 to B22, as a high priority
22) $392 – net increase +3.5%, all other changes +/- (across all departments)
Capital Expenditures reflect the long-term investment in capital infrastructure necessary to
provide electric utility service to customers. Capital investment includes replacement of
depreciated capital assets, as well as, expansion capital investment due to growth and
changing needs of the utility.
A 10 year capital improvement plan for the electric utility has been prepared and includes a 10
year total of $72.4M or an average of $7.2M per year.
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The plan includes $9.25M in battery storage ($250k design in 2023 and $3m in 2024, 2026,
and 2027). An EV charging station for District use of $25k was also added in plan for 2023.
The plan includes $6M for a new building located at the corporate yard at Pioneer Trail for
expansion of operations to include additional indoor fleet and equipment storage, secondary
materials storage and personnel facilities. The proposed building is drafted in budget to be
funded by the issuance of bonds, which spreads the cost (and rate impact) at a low interest
rate over proposed 20 year debt service schedule.
Capital expenditures for B22 of $16.38M and include the notable projects of ($ thousands):
1) $6,000 Proposed new building at corp yard (bond debt financed)
2) $3,000 District Office building modernization (water pays a portion of this thru rent)
3) $1,500 District Office drainage system and paving (water pays a portion of this thru
rent)
4) $1,300 SCADA Reliability Improvement Project Phase 6
5) $ 520 Line Extensions and Upgrades
6) $ 444 Pole Replacements (q50)
7) $ 455 SRIP Pole Replacements (q33)
8) $ 390 Martis Valley Substation Rebuild (planning costs) ($1.4m in 2023 to complete)
9) $ 356 Glenshire Substation Rebuild (planning costs) ($2.1m in 2023/2024 to complete)
10) $ 652 Information Technology projects, including $150k GIS/OMS software and $75k
for Fleet GPS hard/software, and $125k for call recording/reporting hard/software
11) $ 497 Vehicles – five new/add equipment items and $39k to replace a dump trailer
Capital expenditure details can be further referenced in Attachment 3.
Electric vehicles (EV) as part of future fleet replacements (Electric and Water) is under
consideration; however this is a complex matter for utilities life/safety mission critical fleet
equipment with this new/evolving technology.
Revenues for the electric utility are primarily generated from customer rates. The revenue
requirement to balance the utility’s budget is based on the cost of service result of various
components including operating expenses, capital expenditures, reserve requirements, and
debt service requirements.
Budget 2022 operating revenues of $31.65M represent an increase over B21 of $3.97M or
13.7%. This 13.7% increase is comprised of the following component; customer growth 0.5%,
4.7% current demand trend change from B21 expectations, and proposed rate increase of
8.5%.
The Budget 2022 includes an 8.5% average rate increase and Budget 2023 includes an
average rate increase of 6.5%. An independent consultant is concurrently preparing a cost of
service analysis for the District, with results expected in November. Subsequent to the
proposed increases noted in this report, the District’s electric utility rates will remain
competitive in the region and below average for California market. Additionally, a proposed
‘Green Rate’ has been prepared for Board consideration and implementation in FY 2022.
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TDPUD historical electric utility rate data from 2020 Annual Report: (2021 was a 3.0%
increase)
Electric’s rate comparison information from 2020 Annual Report: (2021 was a 3.0% increase
for District Electric utility)
Average
Residential Residential Non- Rate
Year Primary Secondary Residential Total Residential |Primary Secondary Primary Secondary Increase
Non-Residential @ 500 KwH @ 500 KwH @ 785 KwH @ 420 KwH Prim. | Secon.
(1) (1) (2)Mix (3) (3) (4) (4) (5)
2020 4,898 7,659 1,619 14,176 89% | 11% $82.33 $91.83 $120.04 $79.73 1.8% | 2.7%
2019 4,810 7,565 1,585 13,960 89% | 11% $80.25 $89.75 $117.96 $77.65 2.4% | 3.7%
2018 4,798 7,462 1,558 13,818 89% | 11% $77.50 $87.00 $115.20 $74.89 1.9% | 3.0%
2017 4,784 7,389 1,535 13,708 89% | 11% $75.35 $84.85 $113.05 $72.74 1.7% | 2.6%
2016 4,738 7,303 1,527 13,568 89% | 11% $73.51 $83.01 $111.21 $70.90 0.0% | 0.0%
2015 4,642 7,235 1,512 13,389 89% | 11% $73.51 $83.01 $111.21 $70.90 0.0% | 0.0%
2014 4,646 7,157 1,517 13,320 89% | 11% $73.51 $83.01 $111.21 $70.90 0.0% | 0.0%
2013 4,611 7,116 1,517 13,244 89% | 11% $73.51 $83.01 $111.21 $70.90 0.0% | 0.0%
2012 4,611 7,060 1,520 13,191 88% | 12% $73.51 $83.01 $111.21 $70.90 0.0% | 0.0%
2011 4,656 6,983 1,526 13,165 88% | 12% $73.51 $83.01 $111.21 $70.90 0.0% | 0.0%
2010 4,694 6,912 1,535 13,141 88% | 12% $73.51 $83.01 $111.21 $70.90 N/A
(A) :
5yr CAGR 1.1% 1.1% 1.4% 1.1% NA 2.3% 2.0% 1.5% 2.4% N/A
10yr CAGR 0.4% 1.0% 0.5% 0.8% NA 1.1% 1.0% 0.8% 1.2% N/A
Electric Utility
Typical Residential Average Monthly BillAverage Number of Customers
Electric Utility
Monthly
Bill *
Santa Clara $62.66
Imperial ID $70.45
Merced ID $72.70
Roseville $75.60
Azusa $79.34
Turlock ID $81.14
Lompoc $81.66
Riverside $82.09
TDPUD Primary(1) $82.33
Palo Alto $82.39
Liberty $85.26
Anaheim $86.10
TDPUD Blended(3) $88.03
Modesto ID $90.35
Lodi $91.57
TDPUD Secondary (2) $91.83
Redding $92.55
SMUD $96.74
SCE $99.96
Plumas-Sierra $108.89
Pasadena $109.24
LADWP $113.95
PG&E $127.87
SDG&E $149.55
Information to right is 2020
rates. District’s increase for
2021 was 3.0%. Liberty has
filed for a rate increase in
excess of 40%. We estimate
majority, if not all other utilities
had 2021 increase and are
planning increases for 2022 and
2023.
TDPUD Blended(3) + 3.0% for
2021 + 8.5% recommended for
2022 equates to an average
rate of $98.38
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C) Water Utility Budget
The current draft of Budget 2022 (B22) and Budget 2023 (B23) is provided as Attachment 2.
B22 notables in comparison to Budget 2021 (B21) are provided below.
Operating Expenses include the annual operating expenses associated with providing water
service, operating and maintaining water service assets including groundwater wells, storage
tanks, pump stations and pipelines.
Operating Expenses B22 of $11.13 million are $1.34m or 14% greater than B21. The primary
drivers of this cost increase are as follows ($ in thousands):
1) $ 234 – Rate of Pay Increase impact of 4.5%, assumption based on Memorandum of
Understanding (MOU) and Federal Bureau of Labor Statistics (BLS) related
specifications.
a. The BLS CPI-W for August was 4.9%, the MOU maximum cap is 5.0%. Next
update and MOU specified CPI-W is the October figure. (Includes overhead,
across all departments)
2) $104 – Impact of Rate of Pay increases in 2020 & 2021 greater than Budget 2020 &
2021
3) $ 75 – other legal costs estimate (Dept. BoD)
4) $150 – additional FTE, 50% Water, Human Resources Director (Dept. Gen.Mgmt)
5) $ 99 – additional FTE, 50% Water, Risk & Compliance Coordinator (Dept. Gen.Mgmt)
6) $ 87 – additional FTE, 50% Water, Communications Specialist (Dept. Gen.Mgmt)
7) $ 30 – Grant application/writing professional services (Dept. Gen.Mgmt), successful
grant fund applications will more than offset the additional administrative costs
8) $ 27 – Laserfiche & Micro imaging services (Dept. Gen.Mgmt)
9) $ 15 – Survey services (Dept. Gen.Mgmt)
10) $94 – additional FTE, ~50% Water, Vehicle Mechanic (cost charged through
Transportation Overhead, across all departments)
11) $ 264 – transfer 1 FTE, Electric to Water Operations (Dept. Water Ops)
12) $ 177 – additional FTE, Maintenance Program Lead (Dept. Water Ops)
13) $ 64 – Compensation Study contingency, including overhead (across all departments)
14) ($ 81) – net decrease of 0.8%, all other changes +/- (across all departments)
Capital Expenditures reflect the long-term investment in capital infrastructure necessary to
provide water utility service to customers. Capital investment includes replacement of
depreciated capital assets, as well as, expansion capital investment due to growth and
changing needs of the utility.
A 10 year capital improvement plan for the water utility has been prepared and includes a 10
year total of $90.7M or an average of $9.1M per year. The total is down $2.7m from 10/6 draft
due to refinement of various items decreasing, Martiswoods Pumpstation shifted to out year
2027 (Board approved Item #8, October 20, 2021), and adding Pioneer Trail Pipeline and
Pump station expenditures. B22 has decreased and B23 has increased due to timing, with
the 2 year total of $24.7m and $10m excluding debt financed projects. The plan includes
$15M of projects funded by the issuance of bonds, which spreads the cost (and rate impact)
at a low interest rate over a proposed 25 year debt service schedule at $960K range per year.
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This new debt service is at a level that replaces the current debt service that falls off by a
similar amount.
Capital expenditures for B22 of $9.40M and include the notable projects of ($ thousands):
1) $2,555 Pioneer Trail pipeline, new debt financed
2) $2,000 pipeline replacement, new debt financed
3) $ 500 Hirschdale Connection new pipeline, new debt financed
4) $ 740 pump station rehabilitations
5) $ 949 water tank rehabilitations
6) $ 463 Information Technology projects, including $150k GIS/OMS software and $75k
for Fleet GPS hard/software, and $125k for call recording/reporting hard/software
7) $ 644 Vehicles – four truck replacements and two trailer replacement
Shifted from B22 in 10/6 draft to B23 in current draft:
$1,000 new water tank, facility fees portion funded
$2,120 new water tank, new debt financed (this portion reduced from $3.0m in prior draft)
Capital expenditure details can be further referenced in Attachment 3.
Revenues for the water utility are primary generated from customer rates. The revenue
requirement to balance the utility’s budget is based on the cost of service result of various
components including operating expenses, capital expenditures, reserve requirements, and
debt service requirements.
Budget 2022 operating revenues of $16.43M represent an increase over B21 of $2.23M or
15.7%. This 15.7% increase is comprised of the following component; customer growth 0.5%,
6.0% rate increase in 2021 greater than B21 expectation, 0.2% current demand trend change
from B21 expectations, and rate increase of 9.0% (as approved in December 2020).
The Budget 2022 includes a 9.0% average rate increase and Budget 2023 includes an
average rate increase of 8.0%. An independent consultant prepared a cost of service
analysis/rate recommendation in 2020 and the Board adopted the recommendation in included
in B22/B23 and the Financial Master Plan. Post the planned increases, the District water
utility rates will remain competitive in the region.
D) Capital Expenditures / Capital Improvement Plan (Attachment 3)
Water and Electric have a 10 year capital improvement plan, which can be reviewed in detail
in Attachment 3. Prior sections of this report discuss summary information for each utility.
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E) Overheads Rent and Debt (Attachment 4)
There are four overhead charges applied throughout the District’s financials. The calculation
methodologies and application to B22 and B23 are consistent with prior years.
Labor Overhead – distributes cost of all payroll related costs (taxes, insurance, pension)
and non-productive compensation costs across all District operations/work orders/capital
projects
Transportation Overhead – distributes the cost of Fleet across all District operations/work
orders/capital projects
Administrative Overhead – distributes Purchasing/Warehousing common costs across
operations, work orders, and capital projects
Construction Overhead – distributes administrate overhead costs to all capital projects
Details regarding these calculations were reviewed during Workshop #3 on 10/20/2021.
The Water Utility has an Interdepartmental Rent cost charge for operating costs and deprecation
of jointly used District assets which were incurred by the Electric Utility. Cost calculation
methodology for B22 and B23 is consistent with prior years. Water rent expense for B22 is
$490,824 and for B23 is $572,076. The increase in B23 from B22 is primarily driven by water’s
portion of building depreciation, following the capital investment expenditures planned in B22.
Electric and Water debt service amounts by year are provided for reference.
Refer to Attachment 4 for additional details regarding above items.
F) Personnel and Full Time Equivalents
Personnel is at the core of operational and strategic success and a significant cost/investment for
the District. This item was reviewed in detail at workshop #2 on October 6th, 2021. Summary:
73.0 Full Time Equivalents, Budget 2021
+2.0 approved changes in 2020/2021
75.0 Full Time Equivalents, currently approved
+6.5 recommended staff changes for 2022/2023
81.5 Full Time Equivalents, Budget 2022
81.0 Full Time Equivalents, Budget 2023 (- 0.5 electrician full year impact)
+ 6.5 recommended staff changes for 2022
+1 General Administration – Communications Analyst/Tech
+1 General Administration – Risk & Compliance Coordinator
+1 Electric – Troubleman position
+1 Water Ops – two part-time/seasonal helpers (1 FTE) (non-benefited)
+1 Water Ops – Water maintenance program lead
+1 Facilities Manager
+1 Facilities Lead
- 0.5 Electrician position eliminated beginning July 2022 (-1.0 impact on 2023) ** Classification
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and workload under review**
1.0 Electrician position transferred from Electric Ops to Water Ops (no FTE impact)
Attachment 5 provides this information for reference and Organizational Chart.
G) Financial Master Plan
The Financial Master Plan (FMP) is a tool to assist the Board and staff in determining the impacts
of the proposed budget on long-term goals. The FMP includes revenues and expenditures in the
current budget cycle, as well as the following eight years, for a 10 year horizon view of the financial
position, with an emphasis on reserve balances. Further, the FMP is reviewed during the budget
cycle to ensure that the proposed budget is consistent with long-term goals.
The FMP makes assumptions on customer growth and inflation. Further, the FMP incorporates
the 10 year capital improvement plans of the utilities. Changes in FMP from October 6th draft
include factoring changes to operating expenses, capital expenditures, factoring debt issuance
costs, and adding goal % attainment by year on key FMP schedules.
The key measure of financial stability for the District in the FMP is reserve balances. Electric Utility
achieves the policy target balances most years in the plan. Water Utility achieves the policy target
balances only in the final year 2031, due primarily to the current low reserve balances compared
to policy targets and a $9.1m/year average capital improvement plan.
A few keynotes for consideration regarding designated reserves:
Operating Reserve is the General Fund balance and is intended for unanticipated cost items or
cost increases, or an unanticipated loss of revenues. The primary source of incoming funds is
customer rates for electric and water utility service provided.
The Capital Reserve is funded with rates, via transfers from General Fund to Capital Reserve.
This reserve is intended to fund any year-to-year ‘spikes’ in capital expenditures, in addition to
serving as a funding source for any unplanned capital needs.
Both of the above referenced reserves (and the rate stabilization reserve for electric) are an
important component of the overall financial strength of the District, serving as key funding
reserves, in addition to essential components of debt ratings or other review of the District’s
financial position.
Attachment 6, Financial Master Plan, provides FMP draft Electric and Water utilities key
summary pages of revenue, expenditures, and reserve information for the subject 10 year period.
Reserve balances and relationship to goals (highlighted) and related rate change
recommendations are summarized below:
Electric has a net increase in General Fund (Operating Reserve) of $669k in B22 and $49k in
B23, which holds the subject reserve balance right at 50% target balance. This is achieved in
part by the Capital Reserve being slightly below target balance in B22 and B23. Electric has debt
issuance costs estimate of $185,000 in B22 cash flows.
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For Electric, three proposed rate change scenarios are presented for Board consideration:
Water has a net increase in General Fund (Operating Reserve) of $833k in B22 and $249k in
B23, which holds the subject reserve balance right at 50% target balance. This is achieved with
the Capital Reserve being significantly below target balance in B22 and B23 and through 2029 in
FMP. Only in last two years of FMP (2030 and 2031) does Water achieve near or at target reserve
balances. Water has debt issuance costs estimate of $285,000 in B22 cash flows.
TDPUD Budget FY2022 and FY2023 (Draft 11/3/2021)
Financial Master Plan Summary
ELECTRIC
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Rate Change 8.5% 6.5% 5.0% 5.0% 3.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Total Reserves Balance 21,046$ 20,950$ 20,042$ 22,127$ 23,376$ 25,657$ 31,198$ 34,298$ 37,337$ 40,079$
Total Reseres % to Goal 95% 92% 85% 90% 92% 98% 115% 122% 129% 134%
Rate Change 6.5% 6.5% 6.5% 5.5% 3.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Total Reserves Balance 20,491$ 19,789$ 18,725$ 20,817$ 22,072$ 24,357$ 29,901$ 33,006$ 36,052$ 38,798$
Total Reseres % to Goal 92% 87% 79% 85% 87% 93% 110% 118% 124% 129%
Rate Change 8.5% 8.5% 4.0% 4.0% 3.0% 2.0% 2.0% 2.0% 2.0% 2.0%
Total Reserves Balance 21,046$ 21,565$ 20,974$ 23,041$ 24,274$ 26,539$ 32,063$ 35,147$ 38,167$ 40,890$
Total Reseres % to Goal 95% 94% 89% 94% 96% 101% 118% 125% 132% 136%
1st four years rate change total 25% in all three above, latter six years the same in all four.
Operating & Rate Reserve are prioritized over Capital Reserve. See following pages for details.
Scenario 2
($ in thousands)
RECOMMENDED
Scenario 1
Green Shading -Reserves at or above Target
Yellow Shades -Caution, Reserves below Target
Pink Shades -High Caution, Reserveswell below Target
$Dollars in Green - Positive/Favorable Amount
$Dollars in Red - Negative/Unfavorable Amount
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
$45,000
FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31
Electric Projected Cash & Reserve Balance
Goal RECOMMENDED Scenario 1 Scenario 2
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FISCAL IMPACT:
The staff recommended adoption of Resolution 2021-21 for Budget 2022 and 2023 is a balanced
budget consistent with the District’s strategic plan.
ATTACHMENTS:
1 Electric Utility Budget Summary
2 Water Utility Budget Summary
3 Capital Expenditure Summary and Detail, Electric and Water
4 Overheads Rent Debt
5 Personnel and FTE
6 Financial Master Plan, 10 Years, 2022 to 2031
7 Resolution 2021-21 draft