HomeMy WebLinkAbout12 Mid Year budget review & transfersAgenda Item # 12
ACTION
To: Board of Directors
From: Robert Mescher
Date: August 03, 2011
Subject: Mid -Year Budget Review of the District's Financial Performance and
Consideration of Related Transfers of Funds
1. WHY THIS MATTER IS BEFORE THE BOARD
This is a mid -year review with the Board of the financial results as of June 2011 and
consideration of related transfers of funds.
2. HISTORY
District Code, Title 3, Section 3.16.030.7(D) requires that the Board be presented with
a mid -year budget report showing the status of budgeted expenditures compared to
actual expenditures at a Board workshop after the June financial accounting is
completed.
Additionally, reserving District funds for a specific use is solely within the purview of
the Board.
3. NEW INFORMATION
Overall, the actual District operating revenue is on track with the FY11 budget. The
actual District operating expenditures are also on target with the FY11 budget. Staff is
recommending no adjustments to the approved FY11 budget at this time.
The first half of combined actual revenue is equal to half of the FY11 budgeted
revenue (Attachment 1). Electric revenue is 52% of budget and is expected to
continue to be in -line with the FY11 budget by the end of the year. Water revenue is
46% of budget and is expected to be slightly less than the FY11 budget by the end of
the year.
Electric and Water operating expenses are 49% and 42% of budget respectively.
Water expenses are primarily lower due to conservation programs that will be
implemented in the second half of the year, and also due to lower general operating
costs (Attachment 2). It is anticipated, however, that expenses will be slightly less than
the FY11 budget by the end of the year. The year-end operating expenses for Water
Conservation are about $40,000 higher than budgeted, which will be offset by
foregoing $40,000 that was budgeted for Water Conservation capital purchases.
Year-to-date capital expenditures are 37% of the FY11 budget (Attachment 3). Many
of the larger projects just began last month and are expected to be about 11 % less
than the FY11 budget by the end of the year. Most of the variances are from projects
that were funded by the 2006 COP Pipeline Replacement, the Vehicle Reserve, and
the Future Water Meter Reserve. The 2006 pipeline replacement project variance is
due to timing. The project was completed last year, but documentation was not
finalized until 2011. The vehicle purchase variance is also due to timing. The total
actual vehicle purchases for FY10 and FY11 are just slightly under the combined
budget for both years. Lastly, the meter project has been slowed to match the meter
surcharge revenue.
The approved FY11 budget provided for a transfer of $164,440 and $148,526 from the
Electric and Water general funds respectively to the respective vehicle reserve funds
for future purchases of vehicles. However, the actual transfer of those funds was not
4. FISCAL IMPACT
$164,440 and $148,526 will be reserved for Electric and Water vehicle purchases
respectively, as provided in the approved FY11 budget.
5. RECOMMENDATION
A) Authorize the transfer of $164,440 from the Electric General Fund to the Electric
Vehicle Reserve Fund.
B) Authorize the transfer of $148,526 from the Water General Fund to the Water
Vehicle Reserve Fund.
��-
Robert Mescher Michael D. Holley
Acting Administrative Services Manager General Manager
Truckee Donner Public Utility District
Electric Revenue
as of June 30, 2011
12 Mo
Attachment 1
Projection
YTD % of % of
Actual Budget End of Yr Budge
Residential
$ 12,116,271
$ 6,932,269
57%
$
12,350,000
102%
Commercial
9,538,852
4,633,237
49%
9,450,000
99%
Interdept. Sales & Rent
1,888,536
671,274
36%
1,810,000
96%
Standby
21,100
-
0%
21,000
100%
Other
302,870
132,134
44%1
259,000
86%
Total
$ 23,867,629
$ 12,368,914
52%
$
23,890,000
100%
Truckee Donner Public Utility District
Water Revenue
as of June 30, 2011
12 Mo YTD % of
Revenue Budget Actual Budge
Projection
% of
End of Yr Budge
Residential
$ 9,039,546 $
4,310,912
48%
$
8,860,000
98%
Commercial
1,145,369
466,596
41%
1,090,000
95%
Meter Reserve Surcharge
752,100
373,010
50%
750,000
100%
Standby & Fire Protection
171,280
-
0%
171,000
100%
Other
140,952
63,847
45%1
129,000
92%
Total
$ 11,249,247 $
5,214,365
46%
$
11,000,000
98%
Truckee Donner Public Utility District
Electric Operating Expenses
as of June 30, 2011
12 Mo
Cost Center Budge
YTD % of
Actual Budge
Attachment 2
Projection
% of
End of Yr Budge
Board of Directors
$ 88,498 $
38,085
43%
$
88,000
99%
General Management
473,691
222,331
47%
442,000
93%
Administrative Svcs.
1,580,134
752,854
48%
1,500,000
95%
Public Info. & Consrv.
1,403,553
630,065
45%
1,400,000
100%
Operations
3,652,805
1,627,401
45%
3,650,000
100%
Power Supply (GIS)
560,824
294,717
53%
560,000
100%
Purchase Power
11,151,258
5,775,097
52%
11,000,000
99%
Total
$ 18,910,763 $
9,340,550
49%
$
18,640,000
99%
Truckee Donner Public Utility District
Water Operating Expenses
as of June 30, 2011
12 Mo YTD
Cost Center Budget Actual
Projection
%of %of
udget End of Yr Budge
Board of Directors
$ 84,748 $
37,308
44%
$
85,000
100%
General Management
394,590
137,094
35%
275,000
70%
Administrative Svcs.
1,439,146
621,813
43%
1,250,000
87%
Public Info. & Consrv.
259,916
112,139
43%
300,000
115%
Operations
4,969,982
2,064,984
42%
4,890,000
98%
Power Supply (GIS)
221,613
122,701
55%
220,000
99%
Total $ 7,369,995 $ 3,096,039 42%1 $ 7,020,000 95%
Truckee Donner Public Utility District
Electric & Water Capital Projects
as of June 30, 2011
12 Mo YTD
Source of Funds Budget Actual
% Of
Attachment 3
Projection
% Of
End of Yr Budge
Rates
1,613,308
791,328
49%
1,570,000
97%
Facilities Fees
947,714
68,046
7%
900,000
95%
Pipeline Replacement
85,033
192,063
226%
230,000
270%
Vehicle Reserve
341,958
188,601
55%
500,000
146%
Future Water Meters
1,247,728
345,995
28%1
600,000
48%
Total
$ 4,235,741 $
1,586,033
37%
$
3,800,000
90%