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Home My WebLink About13 Budget Performance Review FYE2021 March 2, 2022 14/4/2022 Half nd 2021 2-Budget Performance Review 13ITEM # BACKGROUND 3/2/2022-2021 Year End Financial Report 24/4/2022 BACKGROUNDBACKGROUNDprepared and adopted. This report includes this information.that were not anticipated at the time the budget was needs that have occurred since the adoption of the budget variance from planned expenditures and any projects or budget performance review a description of any significant annual -District Code further requires accompanying the semi•and FY21 Board Approved Budget.expenditures. This is the fourth of four reviews for the FY20 revenues and expenditures compared to actual revenues and annual review of the budgeted -District Code requires a semi•The FY20 and FY21 Budget was adopted November 6, 2019.•BACKGROUND INFORMATION 3/2/2022-2021 Year End Financial Report 34/4/2022 DISTRICT OVERVIEWDISTRICT OVERVIEWDirectors73 Employees | 5 Board •$48 Million Annual Budget•Total Net Position–Million $142 •ResourcesTotal Assets and Deferred Outflows of –$184 Million •California / Town of TruckeeCounty, 46 square miles of service territory, primarily in Nevada •The District was established in 1927. 93 Years Young! •INFORMATION INFORMATION$ amounts as of 12/31/2021 and for 2021, as applicabledollar values are estimates or averages and vary over time-Non highelevation 7370’ service low 5745’ service elevation mgd| 144.8 gpm10,250 production capacitypotable water # miles of pipeline47 pressure zonesstations25 pumping 32 active storage tanks (9.4mg)3 inactive water wellspotable-non| 3 potable water 10 13 active water wells100% Underground water sources Diamond Level (March 2021)RP3 Award from APPAProcurementRenewable Power 65% RPSunderground miles 98 135 miles overhead233 Miles of Distribution Linesutilityelectric energy producing, -dependent, non-transmission Assets (NBV)Total Capital Revenues$15.4 million customersof water to 1,318 MGCustomers13,500 Water Assets (NBV)Total Capital Revenues$29.9 million customersMwh163 Customers14,500 Electric 3/2/2022-2021 Year End Financial Report 44/4/2022 DISTRICT UTILITIES OVERVIEWDISTRICT UTILITIES OVERVIEW INFORMATION INFORMATION 3/2/2022-2021 Year End Financial Report 54/4/2022 Actual versus Budget Comparison–ELECTRIC Actual versus Budget Comparison–ELECTRIC INFORMATION INFORMATION$ in thousands 6 3/2/2022-2021 Year End Financial Report 4/4/2022 up 2.6% to budgetMW volume purchased –$0.266 •up 2.9% to budgetaverage cost per MW –$0.379 •Key notes:Budgetvariance to 5.0% -/ $0.645 -Purchased Power $13.560 budget 1%customer increase 2%, –$0.304 •per day up 2.7%kWHbilled Demand driven, average –$1.000 •Key notes:$1.358 / 4.5% variance to Budget Operating Revenue $29.043 Actual versus Budget Comparison–ELECTRIC Actual versus Budget Comparison–ELECTRIC INFORMATION INFORMATION$ in thousands 7 3/2/2022-2021 Year End Financial Report 4/4/2022 no lossposition, held to maturity as planned, Currently in unrealized market loss •investment broker yielding 0.55%2021, $10M shifted to new -Mid•2021 was 1% expectation most of year, budget set in 2019 for -Market yielding 0.2% •Key notes:variance to Budget75% -/ $0.291 -Investment Income $0.098 primarily position vacanciesall other variances, –$0.600 •greater than budget of $1Mwildfire mitigation costs –$0.472 -•electric operationsposition vacancies in –$0.770 •capital project than budgetless hours charged to –$1.191 -•–$1.255 -•Key notes:14% variance to Budget-$1.548 / -Operating Expenses $12,800 Actual versus Budget Comparison–ELECTRIC Actual versus Budget Comparison–ELECTRIC INFORMATION INFORMATION$ in thousands 8 3/2/2022-2021 Year End Financial Report 4/4/2022 of $12.2M is up $535k / 5% to 2020YE 12/31/2021 Pension net liability •6/30/2022Final debt service payment is •Interest–$20K •Principal–$623K •Electric portion paymentsPension Obligation Bonds, Sidefund•Key notes:variance to Budget0% / $0 Debt Service $0.643 impactsnot completed, pandemic / turnover net; various other projects –$1.378 •Valley Substation delayedMartiscompleted $1.0M, offset by budgeted Truckee Substation –$0.078 •less in IT Projects–$0.518 •delayedyard building in budget corp–$1.223 •Key notes:$3.197 / 49% variance to Budget Capital Expenditures $3.308 Actual versus Budget Comparison–ELECTRIC Actual versus Budget Comparison–ELECTRIC INFORMATION INFORMATION$ in thousands 9 3/2/2022-2021 Year End Financial Report 4/4/2022 changeNovember 2021, based on policy $7.431 to Capital Reserve in •2021, based on 2020 results$0.490 to Rate Reserve in April •Key notes:Not Budgeted-Other Fund Transfers spend in 2020)2021, timing between years ($0 Reserve due to vehicle purchases in greater use of Vehicle –$0.200 -•timing between yearsutilized in 2021, Truckee Substation greater use of Facilities Fees –$0.931 -•Reserves due to lower capital less transferred from Capital –$1.704 •Key notes:$0.573 / 18% variance to Budget Fund Transfers $2.670 Actual versus Budget Comparison–ELECTRIC Actual versus Budget Comparison–ELECTRIC INFORMATION INFORMATION$ in thousands 10 3/2/2022-2021 Year End Financial Report Key Reserve Balances–ELECTRIC Key Reserve Balances–ELECTRIC INFORMATION INFORMATION 3/2/2022-2021 Year End Financial Report 114/4/2022 Actual versus Budget Comparison–WATER Actual versus Budget Comparison–WATER INFORMATION INFORMATION$ in thousands 12 3/2/2022-2021 Year End Financial Report 4/4/2022 assetsUtility for building and common Water Utility pays rent to Electric •Key notes:variance to Budget0% / $0 -Interdept 1.1%, budget 1%2020 to 2021 customer increase •budget expectationsdemand compared to –$0.439 •8.9%, versus budget at 3%average rate increase of –$0.775 •Key notes:$1.214 / 8.5% variance to Budget Operating Revenue $15.419 Actual versus Budget Comparison–WATER Actual versus Budget Comparison–WATER INFORMATION INFORMATION$ in thousands 13 3/2/2022-2021 Year End Financial Report 4/4/2022 lossposition, held to maturity as planned, no Currently in unrealized market loss •investment broker yielding 0.55%2021, $10M shifted to new -Mid•2021 was 1% expectation most of year, budget set in 2019 for -Market yielding 0.2% •Key notes:variance to Budget67% -/ $0.069 -Investment Income $0.034 favroableall other variances, net –$0.075 •recruiting costs, not budgetedwater utility director –$0.030 -•budgetpower supply costs 4% over –$0.047 -•rate at 124%, budget 120%, researchingwater operations overhead –$0.125 -•direct 2% over budget, various driverswater operations payroll –$0.040 -•Key notes:2% variance to Budget-$0.167 / -Operating Expenses $9.425 Actual versus Budget Comparison–WATER Actual versus Budget Comparison–WATER INFORMATION INFORMATION$ in thousands 14 3/2/2022-2021 Year End Financial Report 4/4/2022 DLAD funds, saving $202,000 in interestoff in full on July 1, 2021, with available In addition, the DLAD SRF loan was paid •scheduled$0.801 DLAD SRF loan, DLAD funded, as •$0.154 DWR Prop55 loan, last payment•$0.096 COP DL Surcharge funded•fundedFacFees$0.356 COP Pipeline, •$1.252 COP Pipeline, rates funded•paymentsPOB, Water portion Sidefund$0.429 •Debt Service Amounts:•notes :Key variance to Budget0% / $0 -Debt Service $3.088 between years, pandemic impactsnet; various other projects timing –$0.029 -•no vehicle purchases, budget $270k–$0.270 •replacement, spent $130k, budget $438kwoods pump station martis–$0.408 •budgeted, planned as part of rate increasepipeline replacement project, not –$1.305 -•Key notes:$0.656 / 33% variance to Budget-Capital Expenditures $2.665 Actual versus Budget Comparison–WATER Actual versus Budget Comparison–WATER INFORMATION INFORMATION$ in thousands 15 3/2/2022-2021 Year End Financial Report 4/4/2022 One in the same•2021to Operating General Fund, April $1.618 from Operating Reserve •Key notes:Not Budgeted-Other Fund Transfers expenditures for water in 2021Vehicle Reserves due to no vehicle less transferred from –$270 •Key notes:$0.270 / 46% variance to Budget Fund Transfers Net $0.313 Actual versus Budget Comparison–WATER Actual versus Budget Comparison–WATER INFORMATION INFORMATION$ in thousands 16 3/2/2022-2021 Year End Financial Report Key Reserve Balances–WATER Key Reserve Balances–WATER INFORMATION INFORMATION 3/2/2022-2021 Year End Financial Report 174/4/2022 CUSTOMER ACCOUNTS RECEIVABLECUSTOMER ACCOUNTS RECEIVABLE INFORMATION INFORMATION Staff will continue to monitor arrearages and brief the Board regularly•based on the rules prescribed by the CA administrative agenciesIn 60 days, the funds will be applied to customers with arrearages -and $101,000 Water)administrative agencies in the amount of $214,000 ($113,000 Electric American Rescue Plan Act utility relief funds through California The District applied for and received in January 2022, Federal •Board approved (4/2020) up to $330,000-$119,000 to 383 customers (2020 $85,000, 2021 $34,000)-showing evidence of pandemic loss of income:The District has provided bill credits to primary residential customers •3/2/2022-2021 Year End Financial Report 184/4/2022 CUSTOMER PANDEMIC RELIEF–CUSTOMER ACCOUNTS RECEIVABLE CUSTOMER PANDEMIC RELIEF–CUSTOMER ACCOUNTS RECEIVABLE INFORMATION FISCAL IMPACT 3/2/2022-2021 Year End Financial Report 194/4/2022 FISCAL IMPACTFISCAL IMPACT end 2021 reserve balances. -review of District Code and yearThere are no recommended transfer of funds, based on staff’s •2021 financial performance of the District.There is no direct financial impact related to this report on the •FISCAL IMPACT RECOMMENDATION 3/2/2022-2021 Year End Financial Report 204/4/2022 RECOMMENDATIONRECOMMENDATION budget for 2020 and 2021.variances identified since the adoption of the 2021 end of year which includes significant Accept this report of Budget Performance for RECOMMENDATION