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HomeMy WebLinkAbout7 Budget Public Hearingenda Item # PUBLIC HEARING To: Board of Directors From: Regina Wise Date: November 04, 2015 Subject: Draft FY16 and FY17 Budget Public Hearing 1. WHY THIS MATTER IS BEFORE THE BOARD 7 The Board traditionally holds a Public Hearing before adopting the District's budget and overhead rates. 2. HISTORY District Code requires the District to prepare a two-year budget. BUDGET PROCESS SCHEDULE September 2 • Discuss the objectives, goals, assumptions, labor and debt September 16 • Discuss the Purchased Power Plan October 7 • Discuss the operating and capital budget for the Electric and Water Utilities October 21 • Discuss the operating and capital budgets for supporting services • Reserve funds • Revenue, rates, fees and charges • Present the Financial Master Plan November 4 • Present a draft of the FYI & FY17 Budget • Ten -Year Financial Master Plan Projection • Hold a public hearing regarding the budget November 18 • Adopt the FY16 & FY17 Budget Page 1 of 2 BUDGET ASSUMPTIONS At the September 2, 2015 Board Meeting, staff presented the following budget assumptions: • 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 FYI 73 • An electrician is expected to be added in FY16, and • An engineer is expected to be added in FY17. "O'kiIATIVAI►130]-.1iyi/_1VIIs] ►I The hearing was advertised in the Sierra Sun on October 28th for the November 4th public hearing. 4. FISCAL IMPACT The is no material fiscal impact associated with this Public Hearing. 5. RECOMMENDATION Conduct the public hearing and receive public comment. Jeremy Popov Michael D. Holley Administrative Services Manager General Manager Page 2 of 2