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HomeMy WebLinkAbout9 Budget AdoptionACTION To: Board of Directors From: Regina Wise Date: November 18, 2015 Subject: Consideration of Approving Action Items Related to the FY16 and FY17 Budget a) Approve a Resolution Adopting the FY16 and FY17 Budget and Overhead Allocation Rates; b) Adopt the FY16 and FY17 Purchase Power and Resource Plan; and c) Approve the Related Transfers from Reserve Funds. 1. WHY THIS MATTER IS BEFORE THE BOARD This item completes the FY16 and FY17 Budget preparation process. 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 0 Present a draft of the FY16 & FY17 Budget • Ten -Year Financial Master Plan • Hold a public hearing regarding the budget November 18 • Adopt the FY16 & FY17 Budget 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 FY17; • An electrician is expected to be added in FY16; and • An engineer is expected to be added in FY17. 3. NEW INFORMATION No changes have been made to the FY16 and FY17 Budget as drafted and presented on November 4, 2015. Attachment 1 is the draft FY16 and FY17 Budget. The overhead allocation rates used in the proposed budget are as follows: Overhead Rate FY16 FY17 Labor 101% 10070 Transportation $ 11.52 $ 11.51 Administration 5% 5% Construction 20% 20% No changes have been made to the FY16 and FY17 Purchased Power Plan as drafted and presented on September 16, 2015. Attachment 2 is a summary of the Purchased Power Plan. Attachment 3 is a list of the fund transfers required to balance the FY16 and FY17 Budget. Attachment 4 is a draft of the resolution to adopt the budget and overhead rates. 4. FISCAL IMPACT 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. 5. RECOMMENDATION a) Approve the resolution 2015-22 to adopt the FY16 and FY17 budget; b) Adopt the FY16 and FY17 Purchase Power Plan; and c) Approve the budgeted transfers needed to balance the FY16 and FY17 Budget, 000 Jeremy Popov Administrative Services Manager Michael D. Holley General Manager 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 C2 P�7I41� L iMPROVEMEX FLZAN �L HCTR§c POR770M 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 Attachment 2 DI IDlWLI/1CC D"IM"D DI CVDCAII'11T1I�CG` 11CTA11 PURCHASE POWER PLAN EXPENDITURES DETAIL .� 2017 BUDGET 2016 to 2017 Budget Budget $ BUDGET Purchased Power and Resource Costs 20164 2017 CHANGE Total Energy Supply =Various $1132003896 $11,6811375 $480,479 $68.39 ; $71.48 _ Transmission - NVEnergy $927,156 $927,156 _ $0 Total Bulk Power Costs $125128,052 $12,6081531 $ 480,479 Total Annual MWh 1631778� 163,421 - $77.15 3.8% -357 -0.22% - - Total Delivered Cost $/MWH - $74.05 $3.10 4.02% The 2016 & 2017 Plans assume costs for natural gas, electric market purchases and renewable market purchases. Attachment 2 The various resources are shown in the graphs below: UAMPS Pool 17% Payson 11% Long Term Market Purchase 24% Payson (Natural Gas) 11% FY16 Resource Mix Veyo (Heat Recovery) 2% Renewables 43% Fallon Exchange 3% FY17 RESOURCE MIX Market Purchase Stampede 7% Horse Butte (Wind) 24% Trans Jordan (Landfill Gas) 12% Pleasant Valley(Wind) 0.3 Stampede (Small Hydro) 7% �----- Horse Butte (Wind) Renewables 25% 44% Trans Jordan (Landfill Gas) 12% TRUCKEE DONNER PUBLIC UTILTIY DISTRICT FY16AND FY17 BUDGETED TRANSFERS ELECTRIC UTILITY Not to exceed stated amount) General Capital FY16 Fund AB32 Reserve Vehicle Replacement Reserve Annual Contribution $ (185,078) Vehicle Reserve Utilization for Vehicle Replacements 150,000 Rate Reserve Annual Contribution (320,985) Capital Reserve Utilization for Capital Projects 11710,258 (11710,258) AB32 Cap &Trade Proceed Utilization 965,000 (965,000) FY17 Vehicle Replacement Reserve Annual Contribution (190,630) Vehicle Reserve Utilization for Vehicle Replacements 338,432 Capital Reserve Utilization for Capital Projects 11236,019 (11236,019) AB32 Cap &Trade Proceed Utilization 11290,000 (11290,000) Total Transfer To (From Funds) Vehicle Rate Replacement Reserve Reserve 185,078 (150, 000) 320, 985 190,630 (338,432) TRUCKEE DONNER PUBLIC UTILTIY DISTRICT FY16 AND FY17 BUDGETED TRANSFERS WATER UTILITY Not to exceed stated amount) FY16 FY17 Vehicle Replacement Reserve Annual Contribution Operating Reserve Utilization for Capital Project Funding Facility Fee (FF) Utilization for FF Portion of 2015 Refunding Debt Payment Donner Lake Assessment District (DLAD) Utilization for DLAD Portion of Debt Payment Meter Reserve Utilization for Meter Projects Vehicle Replacement Reserve Annual Contribution Vehicle Reserve Utilization for Vehicle Replacements Operating Reserve Utilization for Capital Project Funding Facility Fee (FF) Utilization for FF Portion of 2015 Refunding Debt Payment Donner Lake Assessment District (DLAD) Utilization for DLAD Portion of Debt Payment Meter Reserve Utilization for Meter Projects Total Transfer To (From Funds) General Fund $ (155,227) 668,968 356,594 99,692 51275 (159,884) 91, 398 224, 356 356, 070 98,120 285, 933 Facility Donner Lake Operating Fees Assmt District Reserve (356,594) (356,070) (99,692) (98,120) (668,968) (224,356) Meter Reserve (285,275) (285,933) Vehicle Replacement Reserve 51227 159, 884 (91,398) $ 2,151,295 $ (712,664) $ (197,812) $ (893,324) $ (571 208) $ 223 713 Attachment 4 Resolution No. 2015 - 22 ADOPTING THE BUDGET AND OVERHEAD RATES FOR FIF16 and FIF17 WHEREAS The Board of Directors adopted a Mission Statement and Statement of Goals and Objectives for the District; and WHEREAS District staff used that Mission Statement and Statement of Goals and Objectives to prepare a draft FY16 and FY17 Budget; and WHEREAS the Board of Directors, Staff, and the public participated in budget workshops in the months of September, October, and November of 2015; and WHEREAS on November 4, 2015, the Board of Directors received a draft FY16 and FY17 Budget; and WHEREAS on November 4, 2015, a public hearing was held; and WHEREAS the Board of Directors accepts the organization changes as directed in the draft FY16 and FY17 Budget. WHEREAS the draft budget for District operations and capital spending for the years FY16 and FY1 I describes accounting overhead allocation rates for labor, transportation, administration, and construction costs; and NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner Public Utility District as follows: A. The 1=Y16 and 1=Y17 Budget is hereby adopted; B. The General Manager and Staff are authorized to implement the biennial FY16 and FY17 Budget; C. The following Budget overhead allocation rates are adopted; Overhead Rate FY16 FY17 Labor 101% 100% Transportation $ 11.52 $ 11.51 Administration 5% 5% Construction 20% 20% D. Adopt the FY16 and FY17 Purchase Power Plan; and E. Approve the budgeted transfers needed to balance the FY16 and FY17 Budget. PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the District on the 18'h of November 2015 by the following roll call vote: AYES: Directors Resolution 2015-22