HomeMy WebLinkAbout8 Finance Master Plan Agenda Item #
TRUCKEE , R
Public Utility Distrirt 1
Workshop
To: Board of Directors
From: Peter Holzmeister
Date: September 29, 2006
Subject: Finance Master Plan
Why this matter is before the Board: This is a workshop item. It involves a review of the
Finance Master Plan as part of the review of the draft Budget for 2007.
History: A few meetings ago we presented to the Board the new revised version of the
District's Finance Master Plan. We explained at that time that the original version was not
as user friendly as we had hoped for. When Tricia Phillips joined our staff with substantial
modeling and analytical abilities we assigned her the task of modifying the Finance Master
Plan. We are now ready to use it side-by-side with the annul Budget.
New information: The Finance Master Plan provides a ten year view of District finances
based on historic trends and certain assumptions about the future. It helps us understand
how decisions made today affect District finances in the next several years. It allows us to
predict revenues and expenditures each year for ten years and observe changes in cash
balances, cash being king. It makes certain assumptions about growth in customer base,
changes in cost to do business and predict the need for changes in rates to maintain cash
goals. It lets us play out options, such as postponing capital expenditures, or reducing
(increasing) staff, or changes in growth of customer base and observe financial impacts. It
helps us see when various debt commitments end and the impact that has on cash
balances. It is an excellent tool that helps us make decisions about an annual Budget.
On Wednesday evening we will again walk the directors through the workings of the
Master Plan. If directors want us to play any scenarios we will be happy to do so.
Recommendation: This is a workshop item. No formal action is required.