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Workshop Item # 10 November 2, 2011 Budget SummaryFY12 and FY13
FY12 and FY13 Budget 2 Electric and Water reserves and revenue•Electric and Water operational and capital budgets•October 19Supporting services budgets•Purchase Power Plan•Overview•October
5Objectives, goals, and assumptions•September 7 Budget Process Schedule
FY12 and FY13 Budget 3 Approve the related FY12 and FY13 budget transfers•Adopt the FY12 and FY13 Purchase Power Plan•Adopt the FY12 and FY13 Budget•November 16Financial Master Plan•Public
hearing•Draft FY12 and FY13 Budget•November 2(cont)
FY12 and FY13 Budget 4 No new debt–increased from 0% to 4% per yearMost other operational expenses will remain flat or slightly –FY11 BudgetStaffing includes a reduction of two employees
from the –FY13Direct labor rates will be flat in FY12 and increased 3% in –No electric and water rate increases in FY12 and FY13–assumptions:At previous workshops, Staff presented the
following key •budgetyear -District Code requires the District to prepare a two•Background / History
Background / History (cont)FY12 and FY13 Budget 5$3.4 million annual debt service–2003 COP debt is extinguished in FY12–year expenses-to-No material change in year–Electric Utility Expenses•Budgeted
demand decreases in FY12; no change in FY13–No rate increase–Electric Utility Revenue•
Background / History (cont)Budget 13& FY 12 FY 6 Forecast new construction to be slow–Lake substationReliability Improvement Project, and the reliability of Donner Focus will continue
on system maintenance, the SCADA –One less employee–Electric Operations•
Background / History (cont)Budget 13& FY 12 FY 7 No main replacement projects in FY12 and FY13•Water meter installation project •Water SCADA system •Capital expenditures–year expenses-to-No
material increases in year–Water Utility Expenses•Decreased demand–No rate increase–Water Utility Revenue•
Background / History (cont)Budget 13& FY 12 FY 8 meterspipeline replacement, and the conservation effect of water Reduced power costs due to energy efficiency increases, –One less employee–Water
Operations•
Comparison of FY12 Budget to FY11 Budget FY12 and FY13 Budget 9(in thousands)
Comparison of FY13 Budget to FY12 Budget FY12 and FY13 Budget 10(in thousands)
11(in thousands)Electric Department Projected Reserve Fund Balances FY12 and FY13 Budget
12(in thousands)Water Department Projected Reserve Fund Balances FY12 and FY13 Budget
Fiscal Impact FY12 and FY13 Budget 13 yearsthat will affect the District’s spending for the next two fiscal This budget workshop is part of the overall budget process •
Recommendation Budget 13& FY 12 FY 14 Review this report and provide comments•
15 FY12 and FY13 Budget
16 OVERHEAD ALLOCATION RATES FY12 and FY13 Budget
FY12 and FY13 Budget 17 expensesallocate overhead to the same accounts as the direct can be multiplied by the overhead allocation rates to (drivers) are related factors of direct expenses
that Metrics•a specific job, function, work order, etc.are impossible or impractical to assign to Indirect expenses•function, work order, etc. are easily attributed to a specific job,
Direct expenses •expenses (overhead) to work orders, departments, etc.are used to allocate indirect Overhead allocation rates •Background / History
FY12 and FY13 Budget 18 the District’s budgetOverhead rates have traditionally been adopted along with •and are an integral part of the budgetOverhead allocation rates are used in billable
work orders •There is no industry standard for overhead allocation rates•allocate indirect expensesOverhead allocation rates are strictly a factor used to •inefficiencyOverhead allocation
rates are no indication of efficiency or •(cont.)Background / History
New Information FY12 and FY13 Budget 19 FY11 and proposed FY12 and FY13 overhead allocation rates