HomeMy WebLinkAbout12 Draft Budget and Workshopenda Item #
BUDGET
To: Board of Directors
From: Regina Wise
Date: November 04, 2015
Subject: Budget: FY16 and FY17
a) FY16 and FY17 Budget Summary
b) Ten -Year Financial Master Plan Projection
1. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the preparation process of the FY16 and FY17 Budget.
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12
District Code requires the District to prepare a two-year budget. Staff has presented
multiple workshops in preparation of the draft FY16 and FY17 budget. The workshops
have been ongoing starting with the September 2, 2015 board meeting. The only
modification to the schedule at this time is that staff has removed the placeholder we
had on the schedule for the final purchase power plan scheduled for November 4th,
2015. Staff has no changes to report from the original purchase power plan presented
on September 16th, 2015.
3. NEW INFORMATION
Draft FY16 FY17 Budget:
Attachment 1 is a draft of the proposed FY16 and FY17 Budget. It includes:
• Executive Summary;
• Part I District's Mission Statement and Goals;
• Part 11 Electric Utility's Operating, Repair and Maintenance Plan;
• Part III Water Utility's Operating, Repair and Maintenance Plan;
• Part IV Electric and Water Capital Improvement Plans; and
• Part V Appendices:
0 1 Interdepartmental Rent
0 2 Budgeted Positions by Department
0 3 Labor Overhead
0 4 Transportation Overhead
0 5 Administrative Overhead
0 6 Construction Overhead
0 7 Electric Debt Schedule
0 8 Water Debt Schedule
0 9 Vehicle Replacement Schedule
Page 1 of 75
Overhead Allocation Rates:
Overhead allocation rates are included in Attachment 1 of the draft FY16 and FY17
budget which are used to allocate indirect expenses (overhead) to work orders,
departments and other expenses. These indirect expenses are impossible or
impractical to assign to a specific job, function, work order etc. Overhead allocation
rates are no indication of efficiency or inefficiency, but merely a factor used to allocate
indirect expenses. This allocation method is consistent with prior budgets.
Overhead Type
FY16
FY17
Labor
101%
100%
Transportation
$ 11.52
$ 11.51
Administration
5.01%
4.87%
Construction
20.12%
19.540A
Additional Budget Information:
Attachment 2 included is activity for operating cash and reserves for this budget cycle
for the past three years in addition to our proposed activity within this draft budget as
requested by the board.
Attachment 3 included is capital spending history for the past three years in addition to
planned spending for this budget cycle as requested by the board.
Ten -Year Financial Master Plan:
Attachment 4 is the ten-year Financial Master Plan that illustrates that the two-year
budget is consistent with the District's long term goals. In reference to a prior question
from the board on the Electric debt's payment schedule and the increase in debt
service in the out years, attachment 5 shows the payment schedule. The payment
schedule for this refinanced pension liability was modeled on cash flow to mirror
existing pension liability which increases as a % of payroll is expected to increase in
the later years the primarily driver being inflation assumptions.
Additionally, per Board direction from the October 21, 2015 Board meeting, where the
ten-year Financial Master Plan was presented shows the District meeting its financial
goals with minimal rate increases. Staff will start preparation to present a high level
review for further analysis and evaluation of our options starting in the first quarter of
2016.
4. FISCAL IMPACT
The proposed FY16 and FY17 Budget is consistent with the District's long-term goals.
Staff is proposing a balanced budget for FY16 and FY17. Total revenue and transfers
from other existing funds will equal total expenses and transfers to reserves.
Page 2 of 75
5. RECOMMENDATION
Receive this report and provide comments to staff.
Jeremy Popov
Administrative Services Manager
Michael D. Holley
General Manager
Page 3 of 75
TRUCKEE DONNER
PUBLIC UTILITY DISTRICT
FYI6 & FY17
Ail
November,, 2( I]
Resolution 2GE5=H,7:
TABLE OF CONTENTS
Executive Summary
Part I - Mission Statement and Goals 4
Part ll — Operating, Repair and Maintenance Plan — Electric Utility
7
Electric Operations Introduction
8
Electric Operations Revenue Statement
9
Summary of Electric Revenues and Expenses
10
Electric Expenditure Detail:
Board of Directors
11
General Management
13
Administrative Services
15
Public Information/Conservation
17
Electric Operations
20
Information Technology (IT)
22
Part 111— Operating, Repair and Maintenance Plan — Water Utility
24
Water Operations Introduction
25
Water Operations Revenue Statement
26
Summary of Water Revenues and Expenses
27
Water Expenditure Detail:
Board of Directors
28
General Management
30
Administrative Services
32
Public Information/Conservation
34
Water Operations
37
Information Technology (IT)
39
Page 5 of 75
TABLE OF CONTENTS Continued:
Part IV - Capital Improvement Plan - Electric and Water Utilities
Part V -Appendices:
Appendix 1
Interdepartmental Rent
Appendix 2
Budgeted Positions by Department
Appendix 3
Labor Overhead
Appendix 4
Transportation Overhead
Appendix 5
Administrative Overhead
Appendix 6
Construction Overhead
Appendix 7
Electric Debt Schedule
Appendix 8
Water Debt Schedule
Appendix 9
Vehicle Replacement Schedule
41
47
49
51
53
55
57
59
60
61
Page 6 of 75
EXECUTIVE SUMMARY
Truckee Donner Public Utility District (District) provides electric power to 13,300 customers and water to 12,600
customers. This service, along with capital replacements, is paid by rates. Expanding electric and water systems in
response to growth in the community is paid by developer fees.
This District budget for years ending December 31, 2016 and 2017 (FY16 and FY17) reflects past performance, current
requirements, and future opportunities and risks. The budgets for both the District's Electric Utility and Water Utility are
balanced. That is to say, the revenue and transfers from reserves are equal to the sum of expenses, debt service, capital
projects, and transfers to reserves.
There is no electric rate increase proposed for FY16 and FY17. An annual 6% water rate increase was adopted for FY16
and a 5% increase for FY17 is proposed. The Electric Utility continues to transition from traditional electric resources to
renewable generation. The Water Utility is improving infrastructure while maximizing the benefits of investments in water
meters and pipeline replacement. Both utilities are improving the reliability of the District's SCADA and communication
systems. The District continues to emphasize return on equity for all programs, resulting in stable rates and improvements
in the District's and customers' bottom lines.
This budget consists of five distinct parts.
Part I Mission Statement
Part II Electric Utility's operations, maintenance and repairs
Part III Water Utility's operations, maintenance and repairs
Part IV Capital budget for the electric and water systems
Part V Appendices
Page 7 of 75
The following table is a comparison of the FY16 and FY17 Budget to the FY15 Budget:
FY16 vs FY15 FY17 vs FY16
FY15 Budget FY16 Budget FY17 Budget % Variance % Variance
Electric Water Total Electric Water Total Electric Water Total Elec Water Total Elec Water Total
Revenue $ 23,560 $11,213 $ 34,773 $ 22,731 $11,875 $ 34,606 $ 22,960 $12,562 $ 35,522 -4% 6% 0% 1% 6% 3%
Expenses 20,910 7,850 28,760 20,674 7,976 28,650 21,595 8,272 29,867 -1% 2% 0% 4% 4% 4%
Income $ 2,650 $ 3,363 $ 6,013 $ 2,057 $ 3,899 $ 5,956 $ 1,365 $ 4,290 $ 5,655
Plus:
From Funds $ 2,000 $ 2,770 $ 4,770 $ 3,929 $ 2,379 $ 6,308 $ 4,003 $ 2,023 $ 6,026 96% -14% 32% 2% -15% -4%
Less:
Debt Service 890 3,330 4,220 927 3,193 4,120 961 3,195 4,156 4% -4% -2% 4% 0% 1%
Capital Projects 2,850 2,653 5,503 4,553 2,930 7,483 4,216 2,958 7,174 60% 10% 36% -7% 1% -4%
To Reserves 910 150 1,060 506 155 661 191 160 351 -44% 3% -3B% -62% 3% -47%
Surplus (Deficit) $ - $ - $ - $ - $ - $ - $ - $ - $ -
Budget Assumptions
The key assumptions used in the FY16 and FY17 Budget were:
• 3% inflation for FY17
• No new debt
• No planned electric rate increase in FY16 & FY17
• Water,rate increase of 6% in FY16
• Maximum water rate increase of 5% in FY17
• Contract negotiations set union labor increases at 5% for FY16 and 3% for FY17
0 An electrician is expected to be added in FY16
• An engineer is expected to be added in FY17
2 Page 8 of 75
Overall Budget
The Electric budget is balanced with revenue collections, Carbon Cap & Trade (AB32) proceeds, and use of reserve
funds. The Water budget is balanced with revenue collections and the use of reserve funds.
The Electric revenue is projected to decrease 4% due to lighter winter weather patterns, decrease in joint pole revenue
based on the current contract and aggressive conservation & energy efficiency programs. The Water customer revenue
is projected to have a 6% increase in FY16 due to a rate increase. A 6% projected revenue increase in FY17 is due to a
maximum rate increase of 5% and a 1 % growth increase.
Electric expenses are budgeted to decrease 1 % due to reduced purchase power usage correlated with the reduced sales.
A 4% FY17 increase compared to FY16 is attributed to 3% inflation along with the addition of an engineer. Water
expenses increased 2% in FY16 and 4% in FY17 due to inflation.
Electric Utility
The utility continues to focus on system maintenance, tree trimming and a high level of RPS. The capital projects include
Master Plan, Meter Replacement Program (AMI), and new construction anticipated to increase compared to recent years.
Water Utility
The utility continues to focus on the Water SCADA Project, Meter Installations, Pipeline Replacements and Ponderosa
Palisades Pump Station Replacement.
3 Page 9 of 75
THE FYI S Q'of FYI
MISSION STATEMENT T
Page 10 of 75
MISSION STATEMENT
The mission of Truckee Donner Public Utility District is to provide reliable, high quality water and electrical power services
while meeting customer demand, and to manage District resources in a safe, open, responsible, environmentally sound
manner at the lowest practical cost.
1.05.020 Obiectives:
1. Responsibly serve the public.
2. Provide a healthy and safe work environment for all District employees.
3. Provide reliable and high quality water supply and distribution system to meet current and future needs.
4. Provide reliable and high quality electric supply and distribution system to meet current and future needs.
5. Manage the District in an environmentally sound manner.
6. Manage the District in an effective, efficient, and fiscally responsible manner.
1.05.030 Goals:
Responsibly serve the public.
1.1 Conduct the District's business in a legal, ethical, open, and transparent manner.
1.2 Implement a proactive public outreach program.
1.3 Promote communication and cooperation with other public and private agencies.
1.4 Develop and implement high standards of customer service.
1.5 Develop and implement high operational standards, procedures, and Codes of Conduct.
2. Provide a healthy and safe work environment for all District employees.
2.1 Reduce the OSHA reportable injury frequency and severity rates relative to previous reporting year.
2.2 Comply with all State and Federal regulations regarding worker safety.
2.3 Maintain the District's wellness program.
2.4 Reduce employee injuries by maintaining an active and effective safety program.
3. Provide reliable and high quality water supply and distribution system to meet current and future needs.
3.1 Maintain and implement a current Urban Water Management Plan which includes current and future projections of water
quality, demand, and supply.
3.2 Maintain and implement a current Water Master Plan, including the required facilities to meet current and future demand and
supply.
3.3 Secure the necessary water rights and other legally required documentation.
3.4 Conduct effective and efficient operations, maintenance, and replacement programs.
Page 11 of 75
4. Provide reliable and high quality electric supply and distribution system to meet current and future needs.
4.1 Develop and implement Risk Management Policy that considers quality and quantity of all energy supply and transmission
contracts and facilities._
4.2 Maintain and implement a long-term energy and load forecast consistent with Risk Management Policy.
4.3 Procure and contract for low cost electric power supplies to reliably meet current and future loads, consistent with the
Renewable Portfolio Standards and Risk Management Policy.
4.4 Maintain and implement an Electric System Master Plan, including the required facilities to meet the current and future
demand and reliable supply.
4.5 Provide effective and efficient maintenance and replacement programs.
4.6 Provide an effective, efficient, and safe operations program.
5. Manage the District in an environmentally sound manner.
5.1 Seek power supply from a resource mix that satisfies its Renewable Portfolio Standard.
5.2 Develop and implement a program of water and electric power use efficiency and conservation.
5.3 Support a program of distributed generation within the District's service area.
5.4 Conduct District business in an environmentally lawful manner.
5.5 Minimize negative impact of District operations on the environment.
5.6 Provide key leadership in the stewardship of the District's aquifer, watershed, and natural infrastructure.
6. Manage the District in an effective, efficient and fiscally responsible manner.
6.1 Utilize modern, cost effective work methods and equipment.
6.2 Employ a qualified and productive workforce.
6.3 Provide safe work conditions and procedures that encourage employee growth, productivity and retention.
6.4 Control the growth of the District's discretional -operational spending to a rate less than the rate of inflation.
6.5 Review and update the Financial Goals policy to achieve a stable financial condition to include planning, revenue, debt, and
reserve goals.
6.6 Develop appropriate financial procedures to assure responsible financial management.
Page 12 of 75
�
7HE FYI & FYI
OPERA 17§MG, MA§MTEXAG CE, AND REpQ §R
ELEC7'R9C U7§L97Y
Page 13 of 75
ELECTRIC OPERATING, MAINTENANCE & REPAIR PLAN INTRODUCTION
The electric budget projects total operating expenditures and transfers to reserve funds for FY16 and FY17 in the
amounts of $22,107,805 and $22,745,812 respectively. Capital expenditures are budgeted for FY16 and FY17 in the
amounts of $4,553,450 and $4,215,833 respectively. Total operating revenues and transfers from various reserve funds
total $26,661,255 and $26,961,645. Of the $4,553,450 for FY16 capital expenditures, $2,693,191 is paid by operating
funds. Of the $4,215,833 for FY17 capital expenditures, $2,764,581 is paid by operating funds. The FY16 and FY17
budget does not propose an electric rate increase and achieves an overall balanced budget.
During FY16 and FY17, the District continues along the path of a balanced, diversified power supply, including increased
renewable energy purchases. This change began with the expiration of the Constellation contract in FY07.
In FY16 and FY17, we continue to commit resources to improving reliability in our service area and addressing back-
logged maintenance projects.
No new debt will be acquired.
8 Page 14 of 75
ELECTRIC OPERATIONS REVENUE STATEMENT
TING BUDGET PRIOR 12 MOS BUDGET $BUDGET %BUDGET BUDGET $BUDGET
VUE I FY15 ENDING 72015 FYI 6 CHANGE I CHANGE FY17 I CHANGE
Residential Sales
Commercial Sales
Interdepartmental Sales
Miscellaneous Operating Revenue
Standby Revenue
Pole Replacements and Contacts
Interdepartmental Rent
TOTAL OPERATING REVENUE
Interest Income
Transfer in from Vehicle Reserve Fund
Transfer in from Capital Reserve Fund
Transfer in from overhead to cover CalPers sidefund debt
Transfer in from AB32 Reserve Fund
Transfer in from CA Solar Initiative
$12,128,092
$11,270,290
$11,588,514
($539,578)
-4%
$11,704,400
$115,885
9,198,288
81695,182
8,981,341
(216,947)
-2%
9,071,155
89,813
1,212,000
1,136,896
1,200,000
(12,000)
-1%
1,212,000
12,000
185,574
175,903
164,668
(20,905)
-11%
166,315
1,647
25,490
23,860
23,171
(2,319)
-9%
23,171
0
407,778
143,305
160,000
(247,778)
-61 %
160,000
0
388,795
385,619
553,602
164,807
42%
561,479
7,877
$23,546,017
$21,833,055
$22,671,297
($874,720)
-4%
$22,898,519
$227,222
14,692
67,473
60,000
45,308
308%
60,600
600
68,011
239,180
150,000
81,989
121%
338,432
188,432
0
0
1,710,258
1,710,258
100%
1,236,019
(474,239)
894,725
881,569
927,300
32,575
4%
960,675
33,375
860,000
861,068
965,000
105,000
12%
1,290,000
325,000
177,400
177,400
177,400
0
0%
177,400
0
TOTAL ELECTRIC REVENUE & TRANSFERS $25,560,846 $24,059,744 $26,661,255 $1,100,409 4% $26,961,645
$300,390
9 Page 15 of 75
SUMMARY OF ELECTRIC REVENUES AND EXPENSES
BUDGET
PRIOR 12 MOS I
BUDGET
$ BUDGET
% BUDGET
BUDGET
$ BUDGET
% BUDGET
RECAP REVENUES LESS EXPENSES
FY15
ENDING 5.2015
FY16
CHANGE I
CHANGE
FY17
CHANGE
CHANGE
ELECTRIC REVENUES & TRANSFERS
$25,560,846
$24,059,744
$26,661,255
$1,100,409
4%
$26,961,645
$300,390
1%
LESS EXPENSES;
Board of Directors
126,957
95,625
131,675
4,718
4%
127,900
(3,775)
-3%
General Management
465,727
501,434
502,861
37,134
8%
518,830
15,969
3%
Administrative Services
1,365,268
1,288,833
1,457,014
91,746
7%
11506,870
49,856
3%
Conservation
1,406,248
1,064,282
1,285,654
(120,594)
-9%
1,321,285
35,631
3%
Electric Operations
4,010,867
3,843,201
4,221,899
211,032
5%
4,539,426
317,528
8%
Power Supply/GIS
613,273
691,403
622,189
8,916
1%
646,619
24,430
4%
Purchased Power
12,414,610
11,646,720
11,945,170
(469,440)
-4%
12,425,649
480,479
4%
Building Maintenance (managed by Waterops)
505,193
452,415
507,980
2,787
1%
507,927
(53)
0%
TOTAL OPERATING EXPENSES
$20,908,143
$19,583,913
$20,674,442
($233,701)
-1%
$21,594,507
$920,064
4%
Debt Service (Appendix Vlll)
894,725
881,569
927,300
32,575
4%
960,675
33,375
4%
Transfer to Vehicle Reserve
179,687
177,507
185,078
5,391
3%
190,630
5,552
3%
Transfer to Electric Rate Reserve Fund
426,527
424,768
320,985
(105,542)
-25%
0
(320,985)
-100%
Transfer to Electric Capital Fund
300,274
308,151
0
(300,274)
-100%
0
0
-
TOTAL EXPENSES & TRANSFERS
22,709,356
21,375,907
22,107,805
(601.551)
-3%
22,745,812
638,007
3%
NET AVAILABLE FOR CAPITAL
$2,851,490
$2 683 837
$4,553,450
$1,701,960
60%
$4,215,833
($337,617)
-7%
10 Page 16 of 75
BOARD OF DIRECTORS
(Electric Budget)
The Board of Directors consists of five elected members who serve four-year terms. The Board generally meets twice
each month on the first and third Wednesdays. The Board conducts its business in a legal, ethical, open, and transparent
manner.
The Board's basic responsibility is to represent the customers of the District. The Board establishes policy and goals for
the proper governing of the District and grants authority to staff to perform the day-by-day tasks necessary to serve
customer needs. The Board reviews the overall District performance by conducting regularly scheduled performance
reviews with the Genera! Manager. The policies adopted by the Board represent the values that the District seeks to
achieve in providing service to its owner/customers.
The Board adopted a Mission Statement and Statement of Objectives and Goals, which were used to form the FY16 and
FY17 Budget. Staff has conducted a series of workshops starting on September 2, 2015 covering the major budget
expenditures prior to presenting the draft budget. The purpose of these workshops was to educate the Board and the
Public, and to receive input and direction from the Board in completing the FY16 and FY17 Budget.
Staff is continuing its public outreach policy as directed by the Board of Directors. The Board continues it's dedication to
transparency. Board meetings are televised and streamed over the Internet. Prior meetings are also available online for
viewing through the District's website. There is time set aside within each agenda item for public input. The Board
conducts workshops before taking action on significant issues. All of these actions help manage the District in an
effective, efficient and fiscally responsible manner. For the budget, a public hearing was scheduled on November 4, 2015.
11 Page 17 of 75
ELECTRIC EXPENDITURE DETAIL
BOARD OF
DIRECTORS
BUDGET
PRIOR 12 MOS
BUDGET
$ BUDGET
I % BUDGET
BUDGET
$ BUDGET
% BUDGET
FY15
ENDING 5.2015
FY76
CHANGE
CHANGE
FY17
CHANGE
CHANGE
Outside Services Employed $12,500 $3,834 $12,500 $0 0%
$12,875
$375
3%
This account is utilized to reflect costs associated with the District's general counsel attendance at board meetings and his performance of research on legal issues
presented at the board level.
Miscellaneous General Expenses 114,457 91,791 119,175 4,718 4%
115,025
(4,150)
-3/
This account covers compensation and benefits paid to directors, election, annual employee recognition dinner, training and conferences attended by directors, minor
office supplies and equipment.
TOTAL $726,957 $95,625 $131,675 $4,718 4%
$127,900
($3775)
-3%
12 Page 18 of 75
GENERAL MANAGEMENT
(Electric Budget)
The District's General Management Department consists of the General Manager; Executive Secretary & Deputy District Clerk; Special
Projects Administrator, and Human Resources Manager. The General Manager is the administrative head of the District with responsibility
for managing the day-by-day affairs of the organization. The Executive Secretary assists the General Manager in various aspects of his
duties, especially in arranging for Board meetings, legislative actions, and keeping proper custody of the records of the District. She also
provides administrative assistance to other members of the District's management and professional staff. The Special Projects
Administrator manages the District's solar and safety programs, acts as the District's real property representative and oversees the District
complex facilities. The Human Resources Manager is responsible for managing employee benefits, workers compensation claims and
coverage, ensuring compliance with the International Brotherhood Local Electrical Workers 1245 MOU, and keeping all employee
documentation current.
The primary role of the General Manager is to lead the District and serve as the primary contact between the elected Board and the
District staff. This includes overall fiscal responsibility, negotiating with the Union, and ensuring that the District is meeting its goals and
objectives. The General Manager prepares Board agendas, and makes certain that matters appearing on the agenda are adequately
researched and presented to the Directors in a meaningful way.
During FY14 and FY15, the General Manager's focus was to expand the purchase of renewable sources of energy for the District,
enhance the District's electric and water conservation programs, and investigate and propose a new multi -tiered rate structure for the
Electric Utility. All of these goals were achieved. The main District goals for FY16 and FY17 are:
6.1 Utilize modern, cost effective work methods and equipment,
6.2 Employ a qualified and productive workforce;
6.3 Provide safe work conditions and procedures that encourage employee growth, productivity and retention;
6.4 Control the growth of the District's discretional -operational spending to a rate less than the rate of inflation; and
6.5 Ensure that the Districts various capital projects are implemented in a smooth and cost effective manner.
In order to maintain the improved reporting relationship between the General Manager to the Board of Directors, the General Manager
will continue to hold semi-annual performance reviews with the Board. An end -of -year performance review is scheduled February 2016
to review all of the General Manager's accomplishments over the past year.
The District's is revising its safety program and goals to meet the District's goal of providing a safe and healthy work environment to all
District employees. We now have a safety incentive program, and have ongoing training and seminars for District staff. The fiscal impact
of these safety programs is to reduce our workers' compensation insurance cost.
13 Page 19 of 75
ELECTRIC EXPENDITURE DETAIL
GENERAL
BUDGET
PRIOR 12 MOS
BUDGET
$ BUDGET
%BUDGET
BUDGET
$ BUDGET
% BUDGET
MANAGEMENT
FY15
ENDING 5.2
FY16
CHANGE
CHANGE
FY17
CHANGE
CHANGE
Administrative & General - Salaries $352,857 $372,435
$360,579
$7,722 2%
$370,406
$9,827
3%
This account is used to charge general administrative staff time other than safety and board related activities.
Office Supplies & Expenses 17,465 29,344
34,250
$16,785 96%
35,670
$1,420
4%
This account is used to cover cell phone use, computer expenses, dues & memberships including LAFCO and NCPA, industry meetings,
office supplies, postage,
training, assessment, personnel expenses and safety .
Outside Services Employed 32,000 38,698
37,500
$5,500 1791a
38,625
$1,125
3%
This account is used to charge the costs of general counsel to review contracts and agreements, property issues,
insurance claims,
bid issues, capital contract issues and
union matters.
Injuries & Damages 22,114 16,697
20,409
($1,705) -8%
21,051
$642
3%
This account includes labor for department safety meetings and training and the organization's wellness program.
General Advertising Expenses 3,986 3,083
3,427
($559) -14%
3,614
$186
5%
This account is used for the cost of publishing ordinances, surplus material, and other legal ad requirements.
Misc General Expenses 37,305 41,177
46,697
$9,392 25%
49,464
$2,768
6%
This account is used to perform board related activities such as preparing meeting minutes, resolutions
and ordinances;
it is also charged with dues and
memberships in electric utility organizations.
TOTAL $465,727 $501,434
$502,861
$37,134 8%
$518,830
$15,969
3%
14 Page 20 of 75
ADMINISTRATIVE SERVICES
(Electric Budget)
The Administrative Services Department supports both the electric and water utilities and is organized into seven functional
areas including customer services, collections, billing, meter reading, accounting, finance, and purchasing. It is staffed by
17 people and lead by the Administrative Services Manager. For FY16 and FY17 the Administrative Services Managerwill
be integrating the Conservation Department with Customer Services. We look forward to this integration to utilize staff
efficiently and effectively and enhance the level of customer service we are able to offer our customers. To help facilitate
this integration and to provide the District with depth in accounting, the vacant position of Finance and Accounting Manager
has been filled.
The department will continue to utilize technology to increase customer engagement and internal accuracy. The
implementation of a new web -based portal, called, "Smart Hub," enables customers to have easy, remote access to their
power and water consumption, in addition to the already existing capability of paying bills on-line and establishing automatic
recurring payments. Staff will continue to optimize this and other tools to minimize costs and still provide excellent customer
service.
Staff will continue to take advantage of opportunities to lower costs and improve internal controls and operating procedures
for billing, accounting and computer operations.
Staff will continue to be trained and developed to provide safe work conditions and encourage employee growth, productivity
and retention.
The District's financial goals will be reviewed annually to achieve a stable financial condition including planning, revenue,
debt, and reserve goals.
15 Page 21 of 75
ELECTRIC EXPENDITURE DETAIL
ADMINISTRATIVE BUDGET PRIOR 12 MOS BUDGET $ BUDGET I % BUDGET
SERVICES
BUDGET $ BUDGET ; BUDGET
FY15 ENDING 5.20i5 FY16 CHANGE CHANGE
FY17 CHANGE CHANGE
Meters/Services Operations Expenses $94,297 $86,553 $89,897 ($4,400) -5%
$92,542 $2,645 3%
This account is used by the meter readers to charge their time to perform meter connects, disconnects and service transfers.
Customer Installation Expense 11,697 10,857 10,161 (1,536) -13%
10,562 401 4%
This account includes charges for G0165 inspections for the electric department as well as investigations of energy diversion.
Customer Account Operations Expense -Salaries 80,697 77,811 82,313 1,616 2%
84,313 2,000 2%
This account includes the management staff supervision of the customer service and billing functions.
Meter Reading Expense 69,031 70,195 65,334 (3,697) -5%
67,684 2,350 4%
This account is used to charge meter reading expenses which includes meter reader labor, overheads, and the hardware and software that supports the meter readers; it also includes
their clothing allowance, uniform expenses, vehicle expenses and training.
Customer Records & Collections Expense 440,578 432,549 476,546 35,968 8%
497,436 20,890 4%
This account includes the major expenses involved in serving our customers. Included are answering and directing phone calls, answering customer questions, customer account setup
expenses, taking and processing customer payments, creating connect, disconnect and transfer paperwork for the crews, creating and reviewing bills, expenses related to the printing
and mailing of the bills, account collection expense, billing software and hardware support, standby billing
expenses, billing equipment maintenance expenses, printed billing and
collection forms, billing postage and customer service staff training.
Customer Records & Collections - Meter Readers 36,177 17,694 18,251 (17,926) -50%
18,890 640
This account includes the meter readers labor and overheads to deliver 48 hour notices and perform disconnect and reconnects relating to non-payment of utility bills.
4%
Provision for Bad Debts 24,154 8,889 18,760 (5,394) -22%
This account represents the amount of uncollectable bills for the year.
18,760 0 0%
Administrative & Operations General -Salaries 364,209 327,438 455,733 91,524 25%
This account includes most of the labor for the administration department except meter
469,451 13,717 3%
reading and customer account related expenses. It includes preparation of the budget and
financial statements, accounts payable and payroll, construction accounting, cash management
activities and processing the daily mail.
Office Supplies & Expenses 71,188 68,653 70,383 (805) -1 %
This account includes bank charges, answering service charges, phone charges, computer and network operating expenses, software maintenance and support for the accounting
72,494 2,111 3%
system, printed forms and material, office equipment leases and equipment maintenance expenses.
Outside Services Employed 29,180 22,138 24,250 ($4,930) -17%
24,978 $728 3%
This account includes any professional services hired from the outside such as audit or accounting services, trust services for our certificates of participation and community facilities
districts and arbitrage calculation services for the same.
Insurance 139,445 157,586 137,135 (2,310) -2% 141,250 4,114 3%
This account Includes annual insurance premiums for property, liability, umbrella liability, directors & officers liability, difference in conditions, boiler & machinery coverage insurance.
Injuries & Damages (Safety) 4,615 8,470 8,253 3,638 79% 8,511 259 3%
This account Includes costs for safety training, Department of Transportation Drug and Alcohol training, worker's compensation expenses for employees who have been injured and
safety related equipment.
TOTAL $1,365,268 $1,288,833 $1,457,014 $91,746 7% $1,506,870 $49,856 3%
16 Page 22 of 75
PUBLIC INFORMATION AND CONSERVATION
(Electric Budget)
The Public Information and Conservation Department is responsible for outreach to the public, providing energy and water
conservation services, administration of the District's public benefits and solar photovoltaic (PV) programs, and tracking of
State and Federal energy/water legislation.
The department staff consists of a Public Information and Conservation Manager, a Conservation Program Administrator,
a Conservation Program Specialist, and a part-time Conservation Customer Service Representative.
The department has a very successful, large portfolio of energy efficiency and conservation programs and also supports
the District's increasing communications and outreach efforts. Significant progress has been made developing the
District's energy conservation programs with a continued emphasis on return on investment. New and emerging
technologies, such as LED lighting and energy controls, will be important for continued cost-effective programs. Key
business programs include: Commercial Lighting Rebate; Business Green Partners; and special projects. Key residential
programs include: Residential Energy Survey (RES); Residential Green Partners; Energy Savings Program (ESP) for
income -qualified customers; Appliance Rebates; Refrigerator Recycle; Neighborhood Resource Mobilization (Block
Party); and the School Conservation Education `Trashion Shows'. Pursuant to SB1, the California Solar Initiative, the
District continued to administer its Solar PV Rebate Program for residential, commercial, and non-profit/government
customers. The S131 program is winding down as per State statute.
For FY16 and FY17, the department plans to consolidate our many programs and to focus on the delivery of these
benefits to our customers. Staff must also develop new, cost-effective energy efficiency programs to replace our existing
residential lighting programs (CFL's). There is also an increased emphasis in educational programs to help our
customers navigate the many energy choices available. Current staff is fully utilized supporting the many program,
customer interactions, and events in which the District participates.
The FY16 and FY17 budget reflects an increased emphasis on Legislation & Regulation (L&R), communications and
outreach, and special projects. This budget also reflects early signs of saturation for some of the District's energy
conservation programs and added challenges to maintaining cost-effective programs given the current regulatory and
political environment. The Solar PV Rebate Program will continue but at a lower budget. Plug-in Electric Vehicles
(PEV's) is a growing area of investment for the District. The demands on the Public Information Officer continue to grow
and, as the State responds to climate change with legislation (AB32) and new Renewable Portfolio Standards/Energy
Efficiency targets (SB 350), so will the District through our partnerships with NCPA, CMUA, and UAMPS.
17 Page 23 of 75
To maintain and enhance the District's public outreach programs, the Department will enhance communication to our
customers through community involvement, events, the web -site and social media (Facebook and Twitter), and traditional
communications and outreach. The Department will continue to build relationships with local and state partners while
conducting our business in an open and transparent manner.
18 Page 24 of 75
ELECTRIC EXPENDITURE DETAIL
CONSERVATION
BUDGET
FY15
I PRIOR 12 MOS
ENDING 5.2015
BUDGET
$ BUDGET
% BUDGET
BUDGET
$ BUDGET
yo BUDGET
FY16
CHANGE
CHANGE
FY17
CHANGE
CHANGE
Public Benefits - Conservation $534,790
$473,282
$533,801
($989)
0%
$557,720
$23,919
4%
The account includes general energy conservation and efficiency programs and wire
to water.
Public Benefits - Research & Development 6,508
11,829
3,564
(2,944)
-45%
3,657
92
This account includes energy conservation and efficiency R&D activities.
3%
Public Benefits - Income-Qualifed 71,447
38,057
83,727
12,280
17%
86,161
2,434
3%
This account includes income -qualified programs.
Public Benefits - Renewable Power 185,295
113,026
182,882
(2,413)
-1 %
182,882
0
This account includes renewable purchases and programs.
0%
Public Benefits - Rebates 178,257
101,466
139,946
(38,311)
-21 %
144,058
4,112
3%
This account includes energy conservation and efficiency rebates.
Public Information 94,564
This account includes the activities of the PIO plus the website and newsletter.
69,797
69,853
(24,711)
-26%
71,558
1,706
2/
Admin & General Salaries 38,658
This account includes the administrative salaries to perform various administrative
18,212
43,302
4,644
12%
44,245
942
2%
Office Supplies & Expenses 14,420
8,807
12,504
(1,916)
-13%
12,879
375
3/
This account includes office supplies, dues, memberships and meeting and training expenses.
Office Supplies & Expenses - Leg & Reg 24,699
30,643
28,777
4,078
17%
29,493
716
This account is for legislation and regulation tracking labor.
2%
General Advertising 30,643
This account includes TDPUD marketing and media activities.
39,277
35,019
4,376
14%
36,069
1,051
3%
Misc General Expense 5,768
This account includes support of community activities such as sponsorship of the Truckee
17,057 9,450
Home Show, Chamber activities, etc.
3,682
64%
9,734
284
3/
SUBTOTAL $1,185,049
$921,453
$1,142,825
($42224)
-4%
$1,178,456
$35,631
3%
CA Solar Initiative - SB1 221,199
142,829
142,829
(78,370)
-35%
142,829
0
0%
This account includes District solar rebates.
'
TOTAL 01,406,248
$7,064,282
$1,285,654
$120594)
-9%
$1,321,285
$35,637
3/
19 Page 25 of 75
ELECTRIC OPERATIONS
The Electric Operations Department is responsible for operating, maintaining, repairing and expanding the District's
electric distribution system. A primary department responsibility is to provide effective and efficient maintenance and
replacement programs and provide an effective, efficient and safe operations program.
The FY16 and FY17 Budget staffs the Department with an Electric Utility Manager (also serving as Power Supply
Engineer and Assistant General Manager), a Superintendent, a Superintendent/Project Administrator, a Senior Mechanic,
a Mechanic, two Electric System Engineers, an additional Electric Engineer to be hired in 2017, two Electrician / Meter
Technicians, one additional Electrician to be hired in mid-2016 to help with Water SCADA, three Foremen, a Lead
Lineman, a Substation Lineman, seven Lineman, two Apprentices and a Contract Administrator.
The department provides work conditions and procedures that encourage employee safety, growth, productivity, and
retention. Apprentices are trained both internally and externally. Journeymen are trained to utilize approved rubber
gloving practices. Employees are trained on underground practices and materials, as the District transitions to becoming
more of an underground utility.
During FY15, District growth continued to be sluggish and is forecasted to slowly recover in FY16 and FY17. As the
economy starts to recover, the department will concentrate efforts on system maintenance. Right-of-way maintenance to
reduce outages will be maintained, and approximately fifty poles have been identified for replacement each year.
Replacement of existing drive -by AMR meters with a fixed base collector system for AMI meter system is budgeted for
implementation in FY16 and FY17.
Capital improvements will be implemented as identified in the Electric System Master Plan.
20 Page 26 of 75
ELECTRIC EXPENDITURE DETAIL
ELECTRIC BUDGET I PRIOR 12 MOS BUDGET $ BUDGET-FF. BUDGET BUDGET I $ BUDGET % BUDGET
OPERATIONS FY15 ENDING 5.2015 FY16 CHANGE I CHANGE L FY17 CHANGE I CHANGE
Operations/PM Sup & Engineering $956,985 $968,928 $1,004,697 $47,712 5% $1,234,425 $229,729 23%
This account is utilized by the electric superintendent and electric engineer for supervision, engineering and management of District electric operations and electric projects. It
also includes design and engineering labor of District electric projects.
Substation Operations/PM 162,624 187,107 178,681 16,057 10% 183,046 4,365 2%
This account Includes all work done on, and within, substations including snow removal, maintenance, repairs and associated materials and employee training
Distribution Operations/PM 1,208,625 950,857 1,210,406 1,781
0%
1,243,530 33,124 3%
This account Includes all maintenance work such as mandated programs, pole testing, tree trimming, pole clearing, small tools and employee training.
Security/Street Light Operations/PM 811 3,260 1,278 467
58%
1,306 28 2/
This account Includes the purchase and installation of street and security lights throughout the District.
Meter Operations/PM 41,799 90,715 87,254 45,455
109%
89,241 1,987 2/
This account includes connecting and disconnecting meters, checking the operation of demand meters, meter audits where we verify the wiring and accuracy of commercial
meter installations, rebuilding of old commercial meter installations and training of meter technicians.
Customer Installation Operations/PM 185,926 185,989 204,496 18,570
This
10%
209,048 4,552
account primarily includes the inspection of new residential services including checks of wiring code compliance. It is also used to do field investigations of customer high
bill complaints, voltage irregularities and energy diversion.
2%
MiscGeneral Operations/PM 480,767 426,358 520,709 39,942
8%
536,888 16,179 3%
This account includes testing of transformer oil to determine PCB content, GIS mapping of the electric system, SCADA repairs and maintenance, cell phones qne pages.
includes computer hardware and software maintenance, clothing
It also
allowance, DMV physicals, meals, uniforms, land fill charges, meeting expenses, advertising, new employee
testing, employee development and training, and Underground Service Alert marking of utilities.
Maintenance of Station Equipment IZ394 5,647 4,157 (8,237)
-66%
4,269 112
This account Includes labor and material to maintain the reclosers and regulators within the substations.
3%
Maintenance of Distribution Lines 458,869 450,691 477,063 18,194
4%
489,006 11,942 3/
This account primarily includes labor and material material for recloser repair, distribution line repair, damage tree clearing, standby labor and storm damage repair.
Maintenace of Security/Street Lights 10,637 3,348 3,346 (7,291)
-69%
3,439 93
This account includes labor, materials and supplies (replacement bulbs, photocells and fixtures) for the maintenance and repair of security and street lights.
3%
Professional Services 121,580 139,525 144,000 22,420
18%
148,320 4,320 3%
This account includes payments to Energy Source and Power Supply consultants. It also includes UAMPS expenditures.
Injuries & Damages (Safety) 258,293 292,177 254,812 (3,481)
-1 %
262,231 7,419 3%
This account Includes labor for safety meetings, safety equipment and safety meeting/training expenses.
Regulatory Commission Expense 111,557 138,599 130,999 19,442
This
17%
134,677 3,678
account includes staff labor and legal fees for any FERC activity.
3%
TOTAL $4,010,867 $3,843,201 $4,221,899 $211,032
5%
$4,539,426 $317,528 8%
21
Page 27 of 75
INFORMATION TECHNOLOGY (IT)
(Electric Budget)
The Information Technology (IT) Department is headed by the IT/IS/GIS Operations Manager and also includes the
positions IT/GIS Analyst, IT/SCADA Engineer, and the Network & Systems Administrator position, responsible for
network, storage and personal devices. Having internal IT staff helps reduce outside contractor costs for the District's IT
needs, increase IT knowledge of systems security, and provide additional accountability and redundancy. In FY16 and
FY17, the IT/GIS Analyst position will become an unrepresented professional employee.
The highest priority for this Department is to enable the Electric Department to operate faster, better, and more cost
efficiently, while providing secure access to critical control, mapping, and information systems. The departments aim is to
provide timely, relevant, and accurate information, when and where it is needed, to support sound decisions that improve
the quality, efficiency, cost, safety, and environmental footprint of the products and services the District delivers and uses.
To achieve the goals and implement the strategies in this plan, the ten guiding principles below focus on leadership and
excellence through quality of service, responsiveness, innovation, professionalism, and teamwork. These principles
require commitment not only from the District's IT professionals, but from all District employees.
1. Consult and advise department heads to drive IT initiatives according to business needs, goals, and objectives, and
developing a sound business case before making any new investment.
2. Foster interdepartmental cooperation in everything we do.
3. View IT from the perspective of the entire district and not from the perspective of individual departments.
4. Acquire, manage, and use technology resources economically and efficiently through standardized information
technology selection and implementation processes.
5. Securely hold and manage technology assets to protect private information.
6. Develop mechanisms and processes to share information easily within the organization and with customers and
partners.
7. Understand that availability and access to technology is a given, and design and build systems accordingly.
8. Aggregate, where feasible, to reduce duplication, and employ information technology that is flexible and
interoperable to respond quickly and efficiently to changing business needs.
9. Devise strategies to leverage investments in the District's existing technology.
10. Train the workforce in the skills needed to effectively use IT systems and the information they contain.
22 Page 28 of 75
ELECTRIC EXPENDITURE DETAIL
BUDGET
PRIOR 12 MOS
BUDGET
$ BUDGET
% BUDGET
BUDGET
BUDGET
$BUDGET
% BUDGET
IT
FY15
ENDING 5 2015
FY16
CHANGE
CHANGE
CHANGE
CHANGE
Engineering & SCADA Operations $109,356 $52,107
$69,447
($39,909)
-36%
$71,487
$2,040
3%
This account is for the operational use of SCADA, Outage Management and Engineering support.
GIS/Engineering Operations 131,690 166,975
125,268
(6,421)
-5%
131,848
6,579
5%
This account is for the maintenance of software and data that supports engineering and SCADA.
Meter Reading 13,652 6,073
13,057
(595)
-4%
13,484
428
3%
This account is for the maintenance of software and data that supports meter technology and AMI.
Customer Records 94,696 116,964
107,318
12,622
13%
110,735
3,417
3%
This account is for the maintenance of software and data that supports Customer Information and Customers.
Administrative & General ITOps 213,005 308,819
257,801
44,796
21%
268,235
10,434
4%
This account is for the maintenance of hardware and software infrastructure that supports data transport, storage and security.
Office Supplies & Expenses 20,506 24,600
21,889
1,383
7%
22,546
657
3%
This account includes office supplies, dues, memberships, meeting and training expenses.
Outside Services Employed 29,680 15,865
23,849
(5,831)
-20%
24,565
715
3%
This account is for outside professional services contracted to maintain hardware, software and data.
Safety 689 0
This account includes department labor for safety meetings, safety equipment and training expenses.
3,559
2,870
417%
3,719
160
4%
TOTAL $613,273 $691,403
$622,189
$8,916
1%
$646,619
$24,430
4%
23 Page 29 of 75
PART X
7HE FYI & FYI
OPERATNGy MAiN7-fAvFA§V E A NO P2EP 6 0R
WATER CU T§L§TY
24 Page 30 of 75
WATER OPERATIONS INTRODUCTION
The water budget projects total operating expenditures and transfers to reserve funds for FY16 and FY17 in the amount of
$11,323,527 and $11,626,923 respectively. The water budget also forecasts capital expenditures for FY16 and FY17 in
the amount of $2,929,790 and $2,958,189 respectively. For capital expenditures, $1,975,545 and $2,356,502 will be paid
by rates each year. The remaining costs will be paid from reserve funds. Operating revenues and transfers from various
reserve funds total $14,253,317 for FY16 and $14,585,112 for FY17. The water budget proposes a 6% rate increase in
FY16 and a maximum 5% rate increase in FY17, achieving an overall balanced budget.
The mechanics and hydraulics of water utility service is very complex in a mountain environment. A majority of the
District's water supply comes from the Martis Valley in the southeast portion of the service territory. The customer base is
spread over forty-six square miles and covers an elevation change from 5,800 feet to 7,500 feet. The system currently
consists of 13 wells, 215 miles of pipeline, 36 storage tanks, and 24 pump stations. This complex system is expensive to
operate, maintain, repair and replace. It is important that the department control the operating costs to minimize future
rate increases. In FY16 and FY17, the District is receiving a return on equity of the pipeline replacement and Wire to
Water efficiency programs with a reduction in total energy usage. The General Managerwill continue as the acting Water
Utility Manager.
During FY16 and FY17, the department will continue with operations and maintenance programs, system replacement
and capital projects, installation of water meters, SCADA replacement and an on -going conservation program.
25 Page 31 of 75
WATER OPERATIONS REVENUE STATEMENT
OPERATING
BUDGET I
PRIOR 12 MOS
BUDGET
$ BUDGET
% BUDGET
BUDGET
$ BUDGET
%BUDGET
REVENUE
FY15
ENDING 7.2015
FY76
CHANGE
CHANGE I
FY17
CHANGE
CHANGE
Residential Sales
$9,268,618
$8,911,036
$10,125,616
$856,996
9%
$10,727,529
$601,913
6%
Commercial Sales
1,470,724
1,243,624
1,283,892
(186,832)
-13%
1,356,673
72,781
6%
Misc. Operating Revenue
225,374
155,705
229,881
4,507
2%
234,479
4,598
2%
Miscellaneous Rents
38,000
43,319
38,760
760
2%
39,535
775
2%
Standby Revenue
157,440
146,150
145,840
(11,600)
-7%
145,840
0
0%
TOTAL OPERATING REVENUE
$11,160,156
$10,499,835
$11,823,989
$663,833
6%
$12,504,056
680,067
6%
Interest Income
52,933
49,072
51,161
(1,772)
-3%
57,541
6,380
12%
Transfer in from Facilities Fees & Reserve - Debt - 2006 COP
0
0
356,594
356,594
-
356,070
(524)
0%
Transfer in from Glenshire billing surcharge -Pipeline loan
166,786
166,786
166,786
0
0%
166,786
0
0%
Transfer in from DLAD surcharge for debt payment
800,852
800,852
800,852
0
0%
800,852
0
0%
Transfer in from DLAD billing surcharge - 2006 COPs
96,615
97,199
99,692
3,077
3%
98,120
(1,572)
-2%
Transfer in from Meter Reserve Fund
450,379
427,162
285,275
(165,104)
-37%
285,933
658
0%
Transfer in from Capital Reserve Fund
1,154,737
1,231,016
668,968
(485,769)
-42%
224,356
(444,612)
-66%
Transfer in from Vehicle Reserve Fund
95,523
75,562
0
(95,523)
-100%
91,398
91,396
-
TOTAL WATER REVENUE & TRANSFERS
$13,977,981
$13347484
$14,253,317
$275,336
2%
$14,585,112
$331,795
2%
26 Page 32 of 75
SUMMARY OF WATER REVENUES AND EXPENSES
RECAP REVENUES LESS EXPENSES
BUDGET I
FY15
PRIOR 12 MOS
ENDING 5.2015
BUDGET
$ BUDGET
% BUDGET
BUDGET
$ BUDGET
% BUDGET
FY16
CHANGE
CHANGE
FY17
CHANGE
CHANGE
WATER REVENUES & TRANSFERS
$13,977,981
$13,347,484
$14,253,317
$275,336
2%
$14,585,112
$331,795
2%
LESS EXPENSES
Board of Directors
126,957
95,356
131,675
4,718
4%
127,900
($3,775)
-3%
General Management
462,307
468,597
489,540
27,233
6%
505,110
$15,570
3%
Administrative Services
1,184,378
1,185,363
1,313,358
128,980
11%
1,358,631
$45,273
3%
Conservation
332,151
317,560
292,481
(39,670)
-12%
300,134
$7,653
3%
Water Operations
4,741,387
4,403,826
4,632,943
(108,444)
-2%
4,835,726
$202,783
4%
IT/GIS
613,292
614,366
561,788
(51,504)
-8%
583,287
$21,500
4%
Interdepartmental Rent (Appendix 1)
388,795
370,070
553,602
164,807
42%
561,479
$7,877
1%
TOTAL OPERATING EXPENSES
$7,849,267
$7,455,138
$7,975,386
$126,120
2%
$8,272,268
$296,882
4%
Debt Service (Appendix IX)
3,325,365
3,319,365
3,192,914
(132,451)
-4%
3,194,771
$1,857
0%
Transfer to Vehicle Reserve Fund
150,706
142,055
155,227
4,521
3%
159,884
$4,657
3%
TOTAL EXPENSES & TRANSFERS
$11,325,338
$10,916,558
$11,323,527
($1,810)
0%
$11,626,923
$303,396
3%
NETA VAILABLE FOR CAPITAL
$2,652,643
$2,430,926
$2,929,790
$277,147
10%
$2,958,189
$28,399
1%
27 Page 33 of 75
BOARD OF DIRECTORS
(Water Budget)
This section will describe specific water issues within the FY16 and FY17 budget. The narrative contained in the electric
portion of the budget describes the general function and organization of the Board of Directors. These descriptions apply
to the Water Division also.
Several challenges exist for the Water Utility in FY16 and FY17. These challenges include: 1) continue to monitor and
manage the cash position; 2) continue to build the SCADA replacement project and 3) continue to repair deteriorated
water distribution pipelines. The District Pipeline Replacement — 2016 project includes a number of pipeline segments.
Planned funding source is the Operating Reserve Fund.
28 Page 34 of 75
WATER EXPENDITURE DETAIL
BOARD OF BUDGET PRIOR 12 MOS BUDGET $ BUDGET I % BUDGET BUDGET $BUDGET % BUDGET
DIRECTORS FY15 ENDING 5.2 FY16 CHANGE CHANGE FY17 CHANGE 1 CHANGE
Outside Services Employed $12,500 $3,834 $12,500 $0 0% $12,875 $375 3/
This account is utilized to reflect costs associated with the District's general counsel attendance at Board meetings and his performance of research on legal issues
presented at the Board level.
Miscellaneous General Expenses 114,457 91,522 119,175 4,718 4% 115,025 ($4,150) -3%
This account covers compensation and benefits paid to Directors, election, annual employee recognition dinner, training and conferences attended by Directors, minor
office supplies and equipment.
TOTAL $126,957 $95,356 $131,675 $4,718 4% $127,900 ($3 775) -3%
29 Page 35 of 75
GENERAL MANAGEMENT
(Water Budget)
This section will describe specific water issues within the FY16 and FY17 budget. The narrative contained in the electric
portion of the budget describes the general function and organization of the General Management. These descriptions
apply to the Water Utility also.
The largest issues facing the Water Department in FY16 and FY17 will be continued work on the water distribution
pipelines and SCADA Replacement Project. Field work for the SCADA Replacement Project started in FY13 and will
continue through several budget cycles.
The General Manager has been working with the Board, the Community, and the Public Information and Conservation
Department in developing both consumer based and system wide conservation measures. The success of these
measures has, and will continue to have a significant impact on rates and future Water Department Budget. Overall water
production is down 35% compared to 2013. Water Department revenues for FY16 and FY17 are projected to be 6% more
than the FY15 budget due to a 6% rate increase in FY16 and a 5% maximum rate increase FY17.
The Water Utility achieved a stable financial condition by planning; setting revenue; debt and reserve goals; and
implementing appropriate financial procedures to assure responsible financial management. The Vehicle Replacement
Fund was established in 2009 to finance the replacement of District vehicles without adding additional external debt. Nine
vehicles were replaced during FY14 and FY15. Five vehicles are planned for replacement during the upcoming budget
cycle.
30 Page 36 of 75
WATER EXPENDITURE DETAIL
GENERAL
MANAGEMENT
BUDGET I
PRIOR 12 MOS
[:B!UDGET
$BUDGET
% BUDGET
BUDGET
$ BUDGET
o BUDGET
FY15
ENDING 52015
Y76
CHANGE
CHANGE
FY17
CHANGE
CHANGE
Administrative & General - Salaries $352,857 $378,303 $360,579
$7,722 2%
$370,406
$9,827
3%
This account is used to charge general administrative staff time other than safety and board related activities.
Office Supplies & Expenses 31,805 28,845 34,250
2,445 8%
35,670
1,420
4%
This account is used to cover cell phone use, computer expenses, dues & memberships including IAFCO, industry meetings, office
supplies, postage, training,
assessment, personnel expenses and safety.
Outside Services Employed 32,000 19,199 37,500
5,500 17%
38,625
1,125
3%
This account is used to charge the costs of general counsel to review contracts and agreements, property issues, insurance claims,
bid issues, capital contract issues
and union matters.
Injuries & Damages (Safety) 22,114 16,542 20,409
(1,705) -8%
21,051
642
3%
This account includes labor for department safety meetings and training and the organization's wellness program.
General Advertising Expenses 3,986 2,924 3,427
(559) -14%
3,614
188
5%
This account is used for the cost of publishing ordinances, surplus material, and other legal ad requirements.
Misc General Expenses 19,545 22,784 33,377
This account is used to perform board related activities such as preparing meeting minutes,
13,832 71 %
35,745
2,368
7%
resolutions and ordinances;
and memberships in electric utility industry organizations.
it is also charged with dues
TOTAL $462,307 $468,597 $489,541
$27,234 6%
$505,110
$15,569
3%
31 Page 37 of 75
ADMINISTRATIVE SERVICES
(Water Budget)
This section will describe specific water issues within the FY16 and FY17 budget. The narrative contained in the electric
section of the budget describes the general function and organization of Administrative Services, which also apply to the
Water Utility.
Beginning in FY09, residential water meters were installed. Over 96% of all customers have a meter and are being billed
volumetrically. The remaining 4% will be installed by FY18 by existing Water Utility employees.
The newly installed residential water meters identify continuous flow including malfunctioning stop -and -drain valves. Letters
have been sent to customers who have possible leaks so that they may quickly identify and correct problems. The District
has implemented custom software in FY15 called the "Water Tool" that allows customers to view their own water
consumption over the Internet to help identify leaks and monitor water conservation efforts. In FY16 we will have enhanced
this process even further with automated constant flow notifications via email.
32 Page 38 of 75
WATER EXPENDITURE DETAIL,
ADMINISTRATIVE
BUDGET
PRIOR 12 MOS
BUDGET
$ BUDGET
% BUDGET
BUDGET
$ BUDGET
% BUDGET
SERVICES
FY15
ENDING 5.2015
FY16
CHANGE
CHANGE
FY17
CHANGE
CHANGE
Meters/Services Operations Expenses $4,963 $0 $4,737 ($232) -5/0
$4,877 $739 3%
This account is used by the meter readers to charge their time to perform meter connects, disconnects and service transfers. It is also used for investigating customer high
bill complaints.
Customer Account Operations Expense -Salaries 80,697 77,944 82,313 1,616 2%
84,313 2,000 2%
This account includes the management staff supervision of the customer service and billing functions.
Meter Reading Expense 3,604 782 4,417 813 23%
4,546 129 3
This account is used to charge meter reading expenses which includes meter reader labor, overheads, and the hardware and software that supports the meter readers; it also
includes their clothing allowance, uniform expenses, vehicle expenses and training.
Customer Records & Collections Expense 440,578 425,694 476,546 35,968 8%
497,436 20,890 4%
This account includes the major expenses involved in serving our customers. Included are answering and directing phone calls, answering customer questions, customer
account setup expenses, taking and processing customer payments, creating connect, disconnect and transfer paperwork for the crews, creating and reviewing bills, expenses
related to the printing and mailing of the bills, account collection expense, billing software and hardware support, standby billing expenses, billing equipment maintenance
expenses, printed billing and collection forms, billing postage and customer service staff training.
Provision for Bad Debts 11,897 4,384 9,240 (2,657) -22%
9,240 0 0%
This account represents the amount of uncollectable bills for the year.
Administrative & Operations General -Salaries 364,209 405,476 455,733 91,524 25%
469,451 13,717 3%
This account includes most of the labor for the administration department except meter reading and customer account related expenses. It includes preparation of the
budget and financial statements, accounts payable and payroll, construction accounting, cash management activities, processing the daily mail.
Office Supplies & Expenses 71,188 66,116 70,383 (805) -1 %
72,494 2,111 3%
This account includes bank charges, answering service charges, phone charges, computer and network operating expenses, software maintenance and support for the
accounting system, printed forms and material, office equipment leases and equipment maintenance expenses.
Outside Services Employed 29,180 37,818 39,010 $9,830 34%
40,180 1,170 3%
This account includes any professional services hired from the outside such as audit or accounting services, trust services for our certificates of participation and community
facilities districts and arbitrage calculation services for the same.
Insurance 175,826 162,870 167,306 (8,520) -5%
172,325 5,019 3%
This account Includes annual insurance premiums for property, liability, umbrella liability, directors & officers liability, difference in conditions, boiler & machinery coverage
insurance.
Injuries & Damages (Safety) 2,236 4,279 3,679 1,443 65%
3,776 97 3%
This account Includes costs for safety training, Department of Transportation Drug and Alcohol training, worker's compensation expenses for employees who have been
injured and safety related equipment.
TOTAL $1,184,378 $1 185363 $1,313,358 $128,980 11 %
$1,358,631 $45,273 3%
33 Page 39 of 75
PUBLIC INFORMATION AND CONSERVATION
(Water Budget)
This section will describe specific water conservation issues within the FY16 and FY17 budgets. The narrative contained
in the electric section of the budget describes the general function and organization of Public Information and
Conservation. These descriptions apply to the water division also.
Significant progress has been made delivering water conservation programs such as Water Efficient Toilet Rebate, Water
Efficient Toilet Exchange, Customer Water Leak Repair Rebate, and Green Partners Water programs. In addition, the
District continues to develop the Patricia S. Sutton Conservation Garden, including the new Garden Party & Seminar, and
has used this educational tool to host multiple events and educate the public on how to have beautiful landscaping and
save water.
The combined impacts of water main -line replacements, the water -meter effect, and water conservation programs have
lowered water consumption by over 30% in recent years. This dramatic reduction has allowed the District to maximize
existing infrastructure and avoid capital expenses. However, the reduced water use also means that existing and future
water conservation efforts need to be more targeted towards maximizing return on investment while addressing the
District's peak summer water use due, mostly, to customer irrigation. The well -documented California drought and the
series of Executive Orders from Governor Brown spawning a series of California State Water Resources Control Board
(SWRCB) Emergency Drought Regulations has put a strain on the department's capacity and resources.
The District is facing significant change and uncertainty regarding the Legislative and Regulatory environment at local,
State, and Federal levels. Historically, significant public outreach was conducted around the new Martis Valley
Groundwater Management Plan (GMP)/model and the collaborative effort between the partner agencies (Placer County
Water Agency, Northstar CSD, and TDPUD). Over the last 2-years, the District has actively participated in the
implementation of the Truckee River Operating Agreement (TROA), the US Bureau of Reclamations Truckee River Basin
Study, and more recently California's Sustainable Groundwater Management Act of 2014 (SGMA). All of these laws,
regulations, or studies could have significant impact on the District's water utility and our customers; and are taking an
increasing amount of the PIO and Conservation Managers capacity.
The District continues to track water related legislative and regulatory activities mainly through our membership and
participation in the California Municipal Utilities Association (CMUA) and California/Nevada American Water Works
Association (CA/NV AWWA). Key current and pending issues include the drought, groundwater regulation, California
34 Page 40 of 75
Bay/Delta Plan, the need for a new water bond or public benefits charge, emerging water quality standards, and State of
California's conservation mandates.
The FY16 and FY17 budgets reflect an increased emphasis on Legislation & Regulation, communications & outreach, and
leveraging existing programs. Outdoor irrigation remains the biggest conservation target going forward. These budgets
also reflect early signs of saturation on some of our programs and the need to fund main line replacement projects.
35 Page 41 of 75
WATER EXPENDITURE DETAIL
BUDGET PRIOR 12 MOS
BUDGET
$ BUDGET
% BUDGETF
BUDGET
$ BUDGET
% BUDGET
CONSERVATION FY15 ENDING 5.2075
FY16
CHANGE
CHANGE
FY17
CHANGE
CHANGE
Water Conservation $188,648
$186,799
$168,820
(19,828)
-11 %
$173,369
4,549
3%
This account includes water conservation & efficiency programs.
Public Information 94,564
69,523
69,853
(24,711)
-26%
71,558
1,706
2%
This account includes the activities of the PIO plus the website and newsletter.
Admin & General Salaries 16,568
6,737
18,558
1,990
12%
18,962
404
2%
This account includes the administrative salaries to perform various administrative projects.
Office Supplies & Expenses 6,180
2,380
5,359
(821)
-13%
5,520
161
3%
This account includes office supplies, dues, memberships and meeting and training expenses.
Office Supplies & Expenses - Leg & Reg 10,586
21,044
12,333
1,747
17%
12,640
307
2%
This account is for legislation and regulation tracking labor.
General Advertising 13,133
29,577
15,008
1,875
14%
15,458
450
3%
This account includes TDPUD marketing and media activities.
Misc General Expense 2,472
1,500
2,550
78
3%
2,627
77
3%
This account includes support of community activities such as sponsorship of the Truckee Home Show, Chamber
activities, etc.
TOTAL $332,151
$317,560
$292,481
($39,670)
-12%
$300,134
$7,653
3
36 Page 42 of 75
WATER OPERATIONS
The main objective for Water Operations is to provide an adequate, reliable and high quality water supply and
distribution system to meet current and future needs. The objective will be accomplished by maintaining and
implementing the current Water Master Plan, including the required facilities to supply current and future demands,
and by providing effective and efficient operation, maintenance and replacement programs.
The Water Department is organized into three groups: 1) Distribution system operations, maintenance and repairs;
2) Facilities operation, maintenance and repair, water quality, and treatment facilities; and 3) System engineering
and planning.
The FY16 and FY17 Budget staffs the department with a Water Utility Manager (also serving as General
Manager), a System Engineer, a Superintendent, a Senior Water Quality and Testing Inspector, an Operations
Foreman, an Operations Leadman, two Operations Service Technicians, a Distribution Foreman, a Distribution
Leadman, and Distribution Service Technicians.
The Water Department's operational, distribution, and engineering staffs are licensed by the California State Water
Resources Control Board to operate and maintain the District water system. This requires staff to participate
regularly in updated education and training to maintain water system operator certifications. Staff is also
continually trained on water system safety procedures and OSHA standards. This training ensures the workforce is
qualified and productive, and it provides safe work conditions and procedures that encourage employee growth,
productivity and retention.
The main challenges for the Operations Group in FY16 and FY17 will be the continued progress toward
completing the SCADA replacement project and water meter installation program. The department will continue
to upgrade aging and undersized water distribution mains through the Capital Pipeline Replacement Projects and
pursue the development of an additional water supply, both of which are multi -year programs.
37 Page 43 of 75
WATER EXPENDITURE DETAIL
WATER
BUDGET
I PRIOR 12 MOS
I
I BUDGET
$ BUDGET
% BUDGET
BUDGET
$ BUDGET
% BUDGET
OPERATIONS
FY15
ENDING 5.2015
1
LFY16
CHANGE
CHANGE
FY17
CHANGE I
CHANGE
Operations Supervision & Engineering $267,092 $298,529 $255,313
($11,779)
-4%
$265,639
$10,325
4%
This account is utilized by the water manager, superintendent and engineer for supervision, engineering and management of District water system.
Facilities Operations 648,355 786,908 766,945
118,590
18%
794,066
27,121
4%
This account includes the operation of wells, pump stations, water treatment, water quality, DHS reports and fees and water quality reports.
It also includes snow removal and
related employee training.
Power Supply 1,306,649 1,229,439 1,204,043
(102,606)
-8%
1,216,119
12,076
1
This account includes the cost of electrical power for the operation of the wells and pump stations.
Distribution Operations/PM 608,396 593,803 670,891
62,495
10%
679,544
8,653
1%
This account includes the labor and materials to operate the water distribution system.
MiscGeneral Operations/PM 260,439 313,754 350,673
90,234
35%
347,083
(3,590)
-1%
This account includes a variety of items such as environmental compliance, GIS mapping of the water system, SCADA repairs and maintenance,
cell phones, pagers,
computer hardware and software, clothing allowance, DMV physicals, meals, uniforms, land fill charges, meeting expenses, advertising and testing for new employees,
training, and Underground Service Alert marking of utilities and associated fees and costs.
Meters/Service Operation 90,136 87,900 120,760
30,624
34%
135,531
14,770
12%
Maintenance of Operations Sup & Engineering 101,365 125,016 127,069
25,704
25%
129,947
2,878
2%
Used by water manager, superintendent and engineer for supervision, engineering and management of District water system.
Maintenance of Sources 844,184 520,606 632,624
(211,560)
-25%
747,235
114,611
18%
This account includes the maintenance and repair of pumps, motors, electrical control equipment and building repair.
Maintenance of Distribution Lines 494,789 326,942 406,716
(88,073)
-18%
420,020
13,304
3%
This account includes the maintenance and repair of distribution line leaks, broken fire hydrants, etc.
Injuries & Damages 119,982 120,929 97,909
(22,073)
-18%
100,543
2,634
3%
This account includes labor for safety meetings, equipment and training expenses.
Maintenance of District Office Building (Div 1) 505,193 452,415 507,980
2,787
1 %
507,927
(53)
0%
TOTAL $5,246,580 $4,856,241 $5,140,923
-2%
(105,657)
$5,343,653
$202,730
4%
38 Page 44 of 75
INFORMATION TECHNOLOGY (IT)
(Water Budget)
The Information Technology (IT) Department is headed by the IT/IS/GIS Operations Manager and also includes the
positions IT/GIS Analyst, IT/SCADA Engineer, and the Network & Systems Administrator position, responsible for
network, storage and personal devices. Having internal IT staff helps reduce outside contractor costs for the District's IT
needs, increase IT knowledge of systems security, and provide additional accountability and redundancy. In FY16 and
FY17, the IT/GIS Analyst position will become an unrepresented professional employee.
The highest priority for this Department is to enable the Water Department to operate faster, better, and more cost
efficiently, while providing secure access to critical control, mapping, and information systems. The departments aim is to
provide timely, relevant, and accurate information, when and where it is needed, to support sound decisions that improve
the quality, efficiency, cost, safety, and environmental footprint of the products and services the District delivers and uses.
To achieve the goals and implement the strategies in this plan, the ten guiding principles below focus on leadership and
excellence through quality of service, responsiveness, innovation, professionalism, and teamwork. These principles
require commitment not only from the District's IT professionals, but from all District employees.
1. Consult and advise department heads to drive IT initiatives according to business needs, goals, and objectives, and
developing a sound business case before making any new investment.
2. Foster interdepartmental cooperation in everything we do.
3. View IT from the perspective of the entire district and not from the perspective of individual departments.
4. Acquire, manage, and use technology resources economically and efficiently through standardized information
technology selection and implementation processes.
5. Securely hold and manage technology assets to protect private information.
6. Develop mechanisms and processes to share information easily within the organization and with customers and
partners.
7. Understand that availability and access to technology is a given, and design and build systems accordingly.
8. Aggregate, where feasible, to reduce duplication, and employ information technology that is flexible and
interoperable to respond quickly and efficiently to changing business needs.
9. Devise strategies to leverage investments in the District's existing technology.
10. Train the workforce in the skills needed to effectively use IT systems and the information they contain.
39 Page 45 of 75
WATER EXPENDITURE DETAIL
BUDGET
PRIOR 12 MOS
BUDGET
$ BUDGET
% BUDGET
F BUDGET
$ BUDGET
% BUDG T
IT
FY15
ENDING 5.2015
FY16
CHANGE
CHANGE
L FY17
CHANGE
CHANGE
Engineering & SCADA Operations $156,903 $83,752
$83,629
($73,274)
-47%
$86,139
$2,510
3/
This account is for the operational use of SCADA, Outage Management and Engineering support.
GIS/Engineering Operations 99,401 111,741
83,512
(15,888)
-16%
87,899
4,366
5%
This account is for the maintenance of software and data that supports engineering and SCADA.
Meter Reading 33,555 5,924
14,941
(18,614)
-55%
15,421
479
3%
This account is for the maintenance of software and data that supports meter technology and AMI.
Customer Records 84,248 105,401
98,989
14,741
17510
102,141
3,152
3%
This account is for the maintenance of software and data that supports Customer Information and Customers.
Administrative & General ITOps 196,126 271,858
236,798
40,672
21%
246,403
9,605
4/
This account is for the maintenance of hardware and software infrastructure that supports data transport, storage and security.
Office Supplies & Expenses 16,090 22,100
19,411
3,321
21 %
19,993
582
3%
This account includes office supplies, dues, memberships, meeting and training expenses.
Outside Services Employed 26,320 13,590
21,150
(5,170)
-20%
21,784
634
3%
This account is for outside professional services contracted to maintain hardware, software and data.
Safety 649 0
This account includes department labor for safety meetings, safety equipment and training expenses.
3,358
2,708
417%
3,508
150
4%
TOTAL $613,292 $614,366
$561,788
($51,504)
-8%
$583,287
$21,500
4%
40 Page 46 of 75
7l'G�Z Gs Y16 C2f F Y V 7
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41 Page 47 of 75
ELECTRIC UTILITY CAPITAL PLAN
SOURCE OF FUNDS
SOURCE OF FUNDS
BUDGET FY16
BUDGET FY17
Operations (OP)
OP
$2,693,191
$2,764,581
Customer Contributions (CC)
CC
675,313
693,315
Capital Reserve (CR)
CR
1,710,258
1,112,820
Vehicle Reserve (VR)
VR
150,000
338,432
Total Source of Funds
$5,228,762
$4,909,148
USE OF FUNDS
ELECTRIC OPERATIONS:
SOURCE OF FUNDS
BUDGET FY16
BUDGET FY17
New Services - BWO
CC
$ 48,268 $
49,409
Commercial Services - BWO
CC
17,578
17,944
Meter Test & Purchase - BWO
CC
76,273
78,459
Purchase & Ins, Transformers - BWO
CC
68,411
70,392
Development Agreements
CC
433,176
444,593
Flat Fee Construction - BWO
CC
25,159
25,928
Secondary Poles & Conductors - BWO
CC
6,448
6,590
Conduit & Boxes - BWO
OP
8,136
8,330
Line Extension & Upgrades
OP
263,876
270,424
Pole Replacements
OP
237,027
243,322
Various District Projects
OP
147,141
150,977
Electric Master Plan Projects
OP
583,835
592,247
Reclosers & Regs - Field Scada
OP
97,234
97,983
Distribution Repl & Improvement
OP
434,012
445,538
Meter Replacement Program (AMI)
CR
1,710,258
1,112,820
Vehicles
Subtotal
VR
150,000
338,432
$4,306, 832
$3, 953,388
42 Page 48 of 75
BUILDING MAINTENANCE:
Mechanics Bay Door
Update Lobby & Board Room
Employee Parking Gate
Subtotal
CONSERVATION:
District Building Wharehouse Lighting
Capital PEV
Subtotal
Information Technology (IT):
Network Infrastructure Improvement
Various IT Projects
Subtotal
ELECTRIC UTILITY CAPITAL PLAN
SOURCE OF FUNDS I BUDGET FY16 BUDGET FY17
OP $ 160,000 $ 200,000
OP 112,500 112,500
OP 0 50,000
$272,500 $362,500
SOURCE OF FUNDS I BUDGET FYI 1 BUDGET FY17
OP $60,821 $0
OP 86,227 87,508
$147, 048 $87, 508
SOURCE OF FUNDS BUDGET FYI BUDGET FY17
OP $ 379,388 $ 381,908
OP 122,994 123,845
$502,382 $505,752
Total Capital Projects & Equipment $5 228,762 $4,909,148
43 Page 49 of 75
CAPITAL IMFRCVfMfr--§ , 7 PLAx
44 Page 50 of 75
SOURCE OF FUNDS
Operations (OP)
Vehicle Reserve Fund (VR)
Meter Reserve (MR)
Operating Reserve Fund (OR)
Total Source of Funds
USE OF FUNDS
WATER OPERATIONS;
Ponderosa Palisades Pump
Meter Replacement
Water Main Replacement
Water Tank Painting
Vehicles
Subtotal
Information Technology (IT):
SCADA Reliability
Water SCADA Replacement
Various IT Projects
WATER CAPITAL PLAN
SOURCE OF FUNDS I BUDGET FY16 I BUDGET FYI7
OP $ 1,975,545 $
2,356,502
VR -
91,398
MR 285,275
285,933
OR 668,968
224,356
$2, 929, 789
$2, 958,190
SOURCE OF FUNDS BUDGET FY16 I BUDGET FY17
OP
$ 96,603 $
103,728
MR
285,275
285,933
OR/OP
1,457,846
1,464,080
OP
57,790
60,131
VR
0
91,398
$ 1,897,515 $
2,005,271
OP 277,195
277,096
OP 632,085
551,978
OP 122,994
123,845
$1, 032, 274
$952, 919
Total Capital Projects & Equipment $2,929,789 $2,958,190
45 Page 51 of 75
PARR V
7HE F Y11 s'Tf FYI 7
46 Page 52 of 75
FY16 APPENDIX 1
INTERDEPARTMENTAL RENT
DISTRICT HEADQUARTERS:
Building operation/PM/repair
Depreciation of jointly used assets
Building rental income
TOTAL COSTS
The above costs are paid by the Electric Utility, the Water Utility is
charged with 50%, which is $553,602 through a monthly rental charge
of $46,133
511,501
595,903
(200)
$1,107,204
47 Page 53 of 75
FY17 APPENDIX 1
INTERDEPARTMENTAL RENT
DISTRICT HEADQUARTERS:
Building operation/PM/repair
Depreciation of jointly used assets
Building rental income
TOTAL COSTS
The above costs are paid by the Electric Utility; the Water Utility is
charged with 50%, which is $561,479 through a monthly rental charge
of $46, 790
5091377
613,780
(200)
$1,122, 957
48 Page 54 of 75
APPENDIX 2
BUDGETED POSITIONS BY DEPARTMENT
POSITION BUDGET FY16 BUDGET FY17
ADMINISTRATION
General Manager
$241,268
$248,506
Project Manager
115,617
119,086
Executive Secretary
78,254
84,515
Human Resources Administrator
115,621
119,09
$550,759
$571,197
ADMINISTRATIVE SERVICES
Admin Services Manager
158,712
163,473
Finance & Accounting Manager
121,387
125,029
Senior Accountant/Accounting Analyst
107,428
110,650
Customer Services Manager
97,436
100,358
Work Order Accounting Supervisor
78,254
80,602
Work Order Clerk
64,341
66,271
Payroll and Accounts Payable Clerk
64,341
66,271
Accounting/Computer Operations Supervisor
78,254
80,602
Customer Billing and CSR Supervisor
82,162
88,735
Billing Clerk
64,341
66,271
Customer Service Representatives (4)
242,599
253,096
Meter Reader Coordinator
78,254
80,602
Meter Reader/Customer Service
51,673
55,806
Wharehouse/Utility Worker
65,936
67,914
Buyer/Clerk
78,254
80,602
Overtime
15,760
17,709
$1,449,130
$1,503,991
CONSERVATION
Public Information and Conservation Manager
154,929
159,578
Conservation Administrator
90,582
93,298
Conservation Services Representative
67,552
69,578
Conservation Services Representative Water (1/2 FTE)
28,479
29,334
Overtime
8,159
8,404
$349,701
$360,192
ELECTRIC OPERATIONS
Power Supply Engineer/Asst General Manager
202,557
208,632
Electric Superintendent/Project Administrator
151,147
155,682
Electric Superintendent
151,147
155,682
Electric System Engineer
158,708
163,469
Electric Engineer
127,460
131,283
Electric Engineer (new position FY17)
105,872
Substation Lineman/Inspector
112,782
116,166
49 Page 55 of 75
APPENDIX 2
BUDGETED POSITIONS BY DEPARTMENT
POSITION BUDGET FY16 BUDGET F.Y77
ELECTRIC OPERATIONS (continued)
Electrician/Meter Technician (2.5 FTE FY16 and 3 FTE FY17)
Foreman, Power Services (2)
Foreman, Service Crew (1)
Lead Lineman
Journeyman Linemen (7)
Apprentice Linemen (2)
Mechanic
Assistant Mechanic
Contract Administrator
Standby/Overtime
POWER SUPPLY
IT/IS/GIS Operations Manager
IT/SCADA Engineer
IT/GIS Analyst
Network & System Administrator
WATER OPERATIONS
Water System Engineer
Water Superintendent
Water Quality Inspector
Water Foremen (2)
Water Leadmen (2)
Water Service Technicians (6)
Water Service Technicians - in Training (2)
Facilites Maintenance/Relief Utility Worker
Summer Intern/Help
Standby/Overtime
TOTAL
261,206
321,460
225,564
232,332
112,782
116,166
107,409
110,631
733,984
755,999
164,324
177,470
95,114
97,968
80,153
82,557
78,254
80,602
170,182
175,287
$2, 932, 773
$3,187,258
140,527
144,743
115,621
119,090
80,153
86,565
99,6
107,63
$435,966
$458,037
162,687
167,567
127,458
131,281
102,299
105,367
204,597
210,733
181,143
186,576
504,903
520,054
138,466
149,544
69,233
71,311
19,743
20,336
156,42
161,120
$1, 666, 957
$1, 723, 889
$7,385,286 $7,804,564
50
Page 56 of 75
VALUE OF BENEFITS
Medical /Dental insurance
Vision insurance
Long term disability
Life insurance
Longevity
FICA
Fed Med
Worker's compensation insurance
Pension
Other Post Employment Benefits
Value of non -productive labor
(vacation, sick leave, holiday)
TOTAL VALUE OF BENEFITS
PRODUCTIVE LABOR
Recommended labor (Appendix 2)
Less value of non -productive labor
TOTAL PRODUCTIVE LABOR
PAYROLL OVERHEAD
(Value of benefits/productive labor)
FY16 APPENDIX 3
LABOR OVERHEAD
$2,113, 365
51,000
31,776
48,126
20,270
428,659
107,703
286,253
2,238, 483
69,307
1,057,488
$6,452,430
$7, 385,286
(1,057,488)
$6,327,798
101.97%
3
Page 57 of 75
FY17 APPENDIX 3
LABOR OVERHEAD
VALUE OF BENEFITS
Medical /Dental insurance
$2,245,144
Vision insurance
52,530
Long term disability
33,131
Life insurance
50,527
Longevity
20,960
FICA
446,308
Fed Med
112,749
Worker's compensation insurance
303,845
Pension
2,357,260
Other Post Employment Benefits
71,278
Value of non -productive labor
1,063,246
(vacation, sick leave, holiday)
TOTAL VALUE OF BENEFITS
$6,756,978
PRODUCTIVE LABOR
Recommended labor (Appendix 2)
$7,804,564
Less value of non -productive labor
(1,063,246)
TOTAL PRODUCTIVE LABOR
$6,741,318
PAYROLL OVERHEAD
100.23
(Value of benefits/productive labor)
52 Page 58 of 75
FY16 APPENDIX 4
TRANSPORTATION OVERHEAD
This appendix assumes that the cost of operating, maintaining and replacing District vehicles and equipment
will be recognized as an overhead charged against direct labor that uses the vehicles.
TRANSPORTATION & EQUIPMENT EXPENSE
Vehicle operation, repair, fuels & misc expenses $687 423
Insurance 23,670
Replacement (depreciation expense) 252,467
TOTAL TRANSPORTATION EXPENSE $963,560
DIRECT LABOR HOURS
General Manager
4,658
Administrative Services
2,244
Conservation
592
Electric Operations
37,171
Water Operations
34,326
Power Supply
4,625
TOTAL DIRECT LABOR HOURS
83,616
TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST
($963,560 DIVIDED BY83,616) $11 52
53 Page 59 of 75
FY17 APPENDIX 4
TRANSPORTATION OVERHEAD
This appendix assumes that the cost of operating, maintaining and replacing District vehicles and ei
will be recognized as an overhead charged against direct labor that uses the vehicles.
TRANSPORTATION & EQUIPMENT EXPENSE
Vehicle operation, repair, fuels & misc expenses $708,046
Insurance 24,381
Replacement (depreciation expense) 260,041
TOTAL TRANSPORTATION EXPENSE $992,468
DIRECT LABOR HOURS
General Manager
4,658
Administrative Services
2,244
Conservation
592
Electric Operations
38,955
Water Operations
35,177
Power Supply
4,625
TOTAL DIRECT LABOR HOURS
86,251
TRANSPORTATION/EQUIPMENT OVERHEAD PER HOUR COST
($992,468 DIVIDED BY 86,251) $11.51
54 Page 60 of 75
FY16 APPENDIX 5
ADMINISTRATIVE OVERHEAD
COMMON SUPPLY COSTS:
Purchasing/Warehousing of Common Supplies
Labor $123,592
Accounts Payable 29,650
Overhead. -
Labor 124,705
Administrative 6,340
Warehousing Operating Costs 284,287
Utilities & Building Maintenance
Miscellaneous (insurance)
Subtotal
TOTAL PURCHASING/WAREHOUSING/COMMON SUPPLIES
TOTAL PRODUCTIVE LABOR
ADMINISTRATIVE OVERHEAD
29,874
5,471
35,345
$319,633
$6, 374,264
5.01
55 Page 61 of 75
FY17 APPENDIX 5
ADMINISTRATIVE OVERHEAD
COMMON SUPPLY COSTS:
Purchasing/Warehousing of Common Supplies
Labor $127, 301
Accounts Payable 30,540
Overhead:
Labor 128,446
Administrative 6,531
Warehousing Operating Costs 292,817
Utilities & Building Maintenance
Miscellaneous (insurance)
Subtotal
TOTAL PURCHASING/WAREHOUSING/COMMON SUPPLIES
TOTAL PRODUCTIVE LABOR
ADMINISTRATIVE OVERHEAD
29,851
5,635
35,486
$328, 304
$6,741,318
4.87%
56 Page 62 of 75
FY16 APPENDIX 6
CONSTRUCTION OVERHEAD
Step 1 General direction and general construction costs from budget:
Electric Operations $56,096
Water Operations 54,115
Total
$110,211
Step 2 Determine capitalized labor as a percent of total labor:
Capitalized
Labor $1,073,044 = 27.23%
Total Electric & Water Labor $3,940,429
Step 3 Determine construction overhead to be capitalized:
Total General direction & construction costs
$110,211
of labor to be capitalized
27.23%
General direction & construction costs to capitalize
$30, 012
Construction accounting costs to capitalize
185,913
$215, 926
Step 4 Calculate construction overhead to be applied to capital improvements:
Capital
Overhead = $215,926 =
20.12
Capital Labor $1,073,044
CONSTRUCTION OVERHEAD =
20.12%
57 Page 63 of 75
FY17 APPENDIX 6
CONSTRUCTION OVERHEAD
Step 1 General direction and general construction costs from budget:
Electric Operations $58,179
Water Operations 55,790
Total
$113,969
Step 2 Determine capitalized labor as a percent of total labor. -
Capitalized
Labor = $1,104,265 = 26.20%
Total Electric & Water Labor $4,214,188
Step 3 Determine construction overhead to be capitalized.
Total General direction & construction costs
$113,969
of labor to be capitalized
26.20%
General direction & construction costs to capitalize
$29,864
Construction accounting costs to capitalize
185,951
$215, 815
Step 4 Calculate construction overhead to be applied to capital improvements:
Capital
Overhead = $215,815 = 19.54%
Capital Labor $1,104,265
CONSTRUCTION OVERHEAD =
19.54
58 Page 64 of 75
APPENDIX 7
ELECTRIC DEBT SCHEDULE
Principal and Interest Payments
Refinanced Pension
Liability
YEAR
TOTAL
2016
927,300
927,300
2017
960,675
960,675
2018
995,650
995,650
2019
1,030,975
1,030,975
2020
1,067,425
1,067,425
2021
1,104, 775
1,104, 775
2022
562,725
562,725
6,649,525
6,649,525
Loan Descriptions :
In 2011, an existing pension liability was refinanced saving the District more than $1 million over the term.
Debt Payments:
Funded by electric and water rates.
59 Page 65 of 75
APPENDIX 8
WATER DEBT SCHEDULE
Principal and Interest Payments
2015 & 2006
2006
2006
DWR-SRF
DWR
MSG MSG
COP
COP
COP
DONNER LAKE
PROP 55
#1551 #1552
YEAR
Rates
FF
Assmt
Assmt
Rates
FF Assmt
TOTAL
2016
1,312,352
356,594
99,692
800,852
306,481
150,158 166,786
3,192,914
2017
1,316,247
356,070
98,120
800,852
306,481
150,158 166,843
3,194, 771
2018
1,312,702
356,284
96,801
800,852
306,481
2,873,119
2019
1,314,356
355,324
100,207
800,852
306,481
2,877,220
2020
1,315,347
357,617
97,973
800,852
306,481
2,878,270
2021
1,299,992
356,179
96,216
800,852
153,241
2,706,480
2022
576,868
358,008
99,060
800,852
1,834,789
2023
577,228
358,672
97,837
800,852
1,834,590
2024
573,008
359,233
100,297
800,852
1,833,390
2025
576,528
360,884
97,925
800,852
1,836,189
2026
573,196
359,005
99,736
1,031,938
2027
575,581
359,806
97,150
1,032,538
2028
574,322
358,474
99,142
1,031,938
2029
570,555
360,101
100,444
1,031,100
2030
575,893
359,147
97,360
1,032,400
2031
574,705
359,524
98,421
1,032,650
2032
573,333
357,313
100,104
1,030,750
2033
575,711
359,424
101,490
1,036,625
2034
574,484
359,309
97,207
1,031,000
000
2035
3o6_Rnn
--- ---
15,342,408 7,113, 771 1,875,179 8,008,520 1,685,644 300,316 333,629 34.659.467
Loan Descriptions :
2006 COP - Water system improvements and Donner Lake financing, a portion of the existing debt was refunded in 2015
DWR/SRF - Replacement of Donner Lake Water System
DWR/Prop 55 - Water system improvement projects
MSG #1551 - Municipal Services Group #1551 - Bridge Street Tank construction
MSG #1552 - Municipal Services Group #1552 - Glenshire Pipeline Project
Debt Payments:
The Water debt payments are funded by development (FF), current customers (rates) and special assessments (assmt).
The method of payment for the water debt is listed in the column headings.
60 Page 66 of 75
APPENDIX 9
VEHICLE REPLACEMENT SCHEDULE
UNIT #
DESCRIPTION
DEPARTMENT
AGE
REPLACEMENT
XXX
New Bucket Truck
Electric
n/a
2016
226
98n Intl Digger/Derrick 4WD
Electric
17
2017
304
07 Chevy Silverado 1500
Water
8
2017
305
07 Chevy Silverado 1500
Water
8
2017
560
78 Liftall-Forklift HD 150 D
Support Services
37
2017
202
06 Chevy Silverado
Electric
9
2018
203
06 Chevy Silverado
Electric
9
2018
204
06 Chevy Silverado 3500 DSL
Electric
9
2018
343
08 Chevy Silverado 3500
Water
7
2018
211
99 Intl Double Bucket Truck 4WD
Electric
16
2018
373
98 Dump Trailer
Water
17
2019
503
06 Chevy Silverado 3500
Support Services
9
2019
216
07 Intl SC-45 Bucket Truck 4WD
Electric
8
2019
105
07 Chevy Trail Blazer
Administration
8
2020
200
06 Chevy Silverado
Electric
9
2020
228
08 GMC 2500HD
Electric
7
2020
369
05 Freight liner/ Mudd Dog
Water
10
2020
580
01 Trackless Snowblower
Support Services
14
2021
201
08 GMC 3500 HD
Electric
7
2021
206
10 Chrvy Silverado 2500 HD
Electric
5
2021
301
06 Chevy Silverado 3500
Water
9
2021
303
07 Chevy Silverado 1500
Water
8
2021
323
11 Ford F-550
Water
4
2021
324
11 Ford F-550
Water
4
2021
325
11 Ford F-550
Water
4
2021
136
08 Chevy Colorado
Electric
7
2022
501
07 Chevy Silverado 1500
Support Services
8
2022
100
13 Toyota Rav 4 Electric Vehicle
Water
2
2023
106
13 Ford Escape
Administration
2
2023
207
13 GMC Sierra 2500HD
Electric
2
2023
61 Page 67 of 75
APPENDIX 9
VEHICLE REPLACEMENT SCHEDULE
UNIT #
DESCRIPTION
DEPARTMENT
AGE
REPLACEMENT
295
306
307
314
107
123
205
210
283
330
223
285
08 John Deer 35D
13 GMC Sierra 2500hd
13 GMC Sierra 2500hd
08 John Deer 410 J
14 Jeep Cherokee
14 Chevy Van
06 Chevy Silverado 3500
11 International/Altec 3050A
72 Small Spool Trailer
13 International Dump Truck
14 Intl 7500 Bucket Trucke 4WD
14 Overhead Wire Puller
Electric
Water
Water
Water
Administration
Administration
Electric
Electric
Electric
Water
Electric
Electric
7
2
2
7
1
1
9
4
43
2
1
1
2023
2023
2023
2023
2024
2024
2026
2026
2028
2028
2029
2029
62 Page 68 of 75
Attachment 2
Truckee Donner Public Utility District
Reserve and Operating Cash Balances
(in thousands)
FY13
FY14
FY14
FY15
FY15
FY16
FY16
FY17
FY17
Year End
Activity
Year End
Activity
Year End
Activity
Year End
Activity
Year End
Goal
(actual)
(actual)
(actual)
(estimate) (estimate)
(budget)
(budget)
(budget)
(budget)
Electric Utility
Operating Cash Balance
$ 5,789
$ (490)
$ 5,299
$ (105)
$ 5,194
$ -
$ 5,194
$ -
$ 5,194
$10,000
Rate Reserve
3,132
455
3,587
452
4,039
321
4,360
-
4,360
3,000
Facility Fees
-
205
205
(205)
-
200
200
250
450
Capital Replacement Fund
2,162
879
3,041
316
3,357
(1,710)
1,647
(1,236)
411
1,000
Vehicle Reserve
430
(214)
216
130
346
35
381
(146)
235
Total Cash and Reserves
$11,513
$ 835
$12,348
$ 589
$12,937
$ (1,154)
$11,783
$ (1,132)
$10,651
$14,000
Water Utility
Operating Cash Balance
$ 2,262
$ 273
$ 2,535
$ (93)
$ 2,442 $
-
$ 2,442
-
$ 2,442 $ 3,000
Operating Reserve
3,603
27
3,630
(1,067)
2,563
(669)
1,894
(224)
1,670 4,000
Capital Reserve
2,012
(1,203)
809
(809)
-
-
-
-
-
Vehicle Reserve
-
159
159
(103)
56
155
211
68
279
Facility Fees
-
452
452
490
942
(7)
935
(1)
934
Meter Reserve
1,074
(279)
795
(224)
571
(285)
286
(286)
-
Total Cash and Reserves
$ 8,951
$ (571)
$ 8,380
$ (1,806)
$ 6,574 $
(806)
$ 5,768 $
(443)
$ 5,325 $ 7,000
Page 69 of 75
Attachment 3
Truckee Donner Public Utility District
Capital Spending
(in thousands)
FY13
FY14
FY15
FY16
FY17
Year End
Activity
Activity
Activity
Activity
(actual)
(actual)
(estimate)
(budget)
(budget)
Electric Utility 2,743
3,039
3,420
4,554
4,216
Water Utility 2,762
2,323
2,818
2,930
2,958
Total Capital Spending 5,505
5,362
6,238
7,484
7,174
Page 70 of 75
Truckee Donner Public Utility District
Attachment 4
Financial Master Plan Summary
FY16 through FY25
(in thousands)
ELECTRIC
FY16 FYI FYI FYI FY20
FY21
FY22
FY23
FY24
FY25
Operating Cash Flow
Operating revenue
$ 22,671 $22,899 $24,041 $25,228 $26,230
$27,272
$ 28,356
$ 29,483
$ 30,655
$ 31,874
Operating expenses
(20,674) (21,595) (22,243) (22,910) (23,597)
(24,305)
(25,035)
(25,156)
(25,910)
(26,688)
Other revenue/(expenses)
(211) (177) (149) (107) (26)
37
109
169
193
215
Net Income
$ 1,786
$ 1,127 $
1,649
$ 2,211
$ 2,607
$ 3,004 $
3,430 $
4,496 $
4,938 $
5,401
Transfer from/(to) funds
3,423
3,812
2,325
2,257
2,189
2,368
388
-14
16
-241
Debt principle payments
(656)
(723)
(795)
(871)
(952)
(1,038)
(549)
-
-
-
Capital projects
(4,553)
(4,216)
(3,040)
(2,969)
(2,899)
(3,078)
(3,000)
(3,253)
(3,879)
(4,219)
Change in Operating Cash
$ (0)
$ (0) $
139
$ 629
$ 945
$ 1,255 $
269 $
1,229 $
1,075 $
940
Cash & Reserve Balances
Operating Cash Balance
$ 5,194
$ 5,194
$ 5,333
$ 5,961
$ 6,906
$ 8,161
$ 8,430
$ 9,659
$ 10,734
$ 11,675
Rate Reserve Balance
4,360
4,360
4,404
4,448
4,515
4,582
4,651
4,744
4,839
4,936
Facility Fee Reserve Balance
201
452
714
637
559
476
389
298
202
98
Capital & Vehicle Reserve Balance
2,029
645
442
390
495
509
692
719
717
973
Cash & Reserve Balances
$ 11,784
$10,651
$10,893
$11,436
$12,475
$13,728
$ 14,162
$ 15,420
$ 16,492
$ 17,682
Debt service coverage
2.37
1.62
2.06
2.51
2.72
2.94
6.41
no debt
no debt
no debt
(1.10 required until 2022)
Proposed rate change 0.0% 0.0% 4.0% 4.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Page 71 of 75
$20,000
$18,000
$16,000
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
Electric Projected Cash & Reserve Balance
(in thousands)
Goal
h & Reserve
Balances
Attachment 4
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Page 72 of 75
Truckee Donner Public Utility District
Financial Master Plan Summary
FY16 through FY25
(in thousands)
Attachment 4
WATER
FYI
FYI
FYI
FYI
FY20
FY21
FY22*
FY23
FY24
FY25
Operating Cash Flow
Operating revenue
$
11,824
$
12,504
$
12,993
$
13,502
$
14,031
$ 14,444
$
14,869
$
15,016
$
15,164
$
15,313
Operating expenses
(7,975)
(8,272)
(8,552)
(9,085)
(9,371)
(9,666)
(9,971)
(9,916)
(10,230)
(10,553)
Other revenue and expenses
(642)
(586)
(570)
(522)
(459)
(397)
(313)
(264)
(229)
(201)
Net income
$
3,207
$
3,646
$
3,871
$
3,895
$
4,201
$ 4,381
$
4,585
$
4,836
$
4,705
$
4,559
Transfers from/(to) funds
1,155
794
230
217
523
511
372
449
197
408
Debt principle payments
(1,432)
(1,482)
(1,380)
(1,430)
(1,487)
(1,377)
(580)
(604)
(625)
(654)
Capital projects
(2,930)
(2,958)
(2,869)
(2,857)
(3,043)
(3,089)
(3,736)
(4,203)
(4,044)
(3,349)
Change in Operating Cash
$
-
$
-
$
(148)
$
(175)
$
194
$ 426
$
641
$
478
$
233
$
964
Cash & Reserve Balances
Operating Cash Balance
$
2,442
$
2,442
$
2,294
$
2,118
$
2,310
$ 2,735
$
3,376
$
3,853
$
4,086
$
5,049
Operating Reserve Balance
1,894
1,670
1,686
1,703
1,729
1,755
1,781
1,817
1,853
1,890
Vehicle Reserve Balance
211
280
409
551
394
245
234
148
313
272
Meter Reserve Balance
286
-
-
-
-
_
_
_
Facility Fee Balance
935
933
943
957
978
1,005
1,033
1,071
1,112
1,156
Cash & Reserve Balances
$
5,768
$
5,325
$
5,332
$
5,329
$
5,411
$ 5,740
$
6,424
$
6,889
$
7,364
$
8,367
Debt service coverage
(1.25 required until 2036)
1.84 2.01 2.41 2.39 2.52 2.81 5.31 5.55 5.41 5.24
Proposed rate change 6.0% 5.0% 3.0% 3.0% 3.0% 2.0% 2.0% 0.0% 0.0% 0.07/0
Page 73 of 75
Attachment 4
$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
Water Projected Cash & Reserve Balance
(in thousands)
Goal
Cash & Reserve Balances
FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25
Page 74 of 75
ELECTRIC DEBT SCHEDULE
Principal and Interest Payments
Refinanced Pension
Liability
YEAR
TOTAL
2016
927,300
927,300
2017
960,675
960,675
2018
995,650
995,650
2019
1,030,975
1,030,975
2020
1,067,425
1,067,425
2021
1,104, 775
1,104, 775
2022
562,725
562,725
6,649,525
6,649,525
Loan Descriptions :
In 2011, an existing pension liability was refinanced saving the District more than $1 million over the term.
Debt Pavments:
Funded by electric and water rates.
Attachment 5
Page 75 of 75