HomeMy WebLinkAbout2009-02-04 Agenda Packet - Board (31) Agenda Item # 14
Public fi District I
ACTION
To: Board of Directors
From: Bob Mescher
Date: February 04, 2009
Subject: Review of FY08 Budget, Year-end Adjustments and FY08 Carry-overs
1. WHY THIS MATTER IS BEFORE THE BOARD
Title 3, Section 3.02.010.2 of the District Code requires the budget performance to be
reviewed at a Board workshop semiannually after the close of the June and December
accounting periods during each fiscal year. Only the Board can make adjustments to
the budget.
2. HISTORY
The FY08 Budget was adopted on November 19, 2007 and minor revisions were
authorized on July 23, 2008 as part of the mid-year budget review.
3. NEW INFORMATION
Preliminary FY08 results indicate that the Electric Department eliminated the
$563,000 budgeted deficit and was virtually balanced with a slight surplus. The Water
Department operations exceeded budget expectations and had a larger surplus that
staff proposes to use to pay down internal debt and continue to increase reserve
balances.
The net rate-funded surplus for the Electric Department was $89,000 as compared to
a budgeted deficit of $563,000. Despite the revenues being $334,000 (1.5%) less than
budgeted, the overall net operating income of $4,930,000 was $260,000 (5.6%) more
than budgeted, primarily due to decreased purchased power of $913,000. The other
expenses, net of other income, were $230,000 less than budgeted and the rate-
funded capital expenditures for the Electric Department were $162,000 less than the
budgeted rate-funded capital expenditures, resulting in a small surplus of$89,000.
The net rate-funded cash surplus for the Water Department was $561,000 as
compared to a balanced budget. The Water Department revenues were $674,000
(6.9%) more than budgeted and the operating expenses were $145,000 (2.2%) less
than the FY08 budget. The resulting net operating income for the Water Department
was $819,000 more than budgeted. $242,000 of unanticipated rate-funded capital
projects offset a portion of that operating income, resulting in a $561,000 surplus.
The attached reports show the actual results as compared to the adopted revised
budget.
4. FISCAL IMPACT
The 2008 rate-funded surplus can be used to increase reserves and/or the budgeted
2009 rate-funded capital projects.
5. RECOMMENDATION
Staff recommends that the Board authorize the transfer of the Electric Department's
FY08 surplus, estimated at $89,000, to increase the FY09 rate-funded capital budget
for additional electric meter replacements and the Tahoe Donner Substation rebuild.
Staff also recommends that the Board authorize the transfer of the Water
Department's surplus, estimated at $561,000 to the following reserve funds:
• $200,000 to the Reserve for Future Water Meters
0 $361,000 to reduce the internal loan against the Land Sales Fund.
Mary Chapman Michael D. Holley
Administrative Services Manager General Manager
Truckee Donner Public Utility District
Budget vs Actual Revenue & Expenditures PRELIMINARY
Electric Department
Fiscal Year Ending December 31, 2008
Variance
FY08 FY08 Favorable
Type Budget Actual (Unfavorable)
OPERATING REVENUE
Residential $ 11,264,000 $ 11,218,000 $ (46,000) -0.4%
Commercial 9,241,000 8,910,000 (331,000) -3.6%
Interdept. Sales & Rent 1,870,000 1,772,000 (98,000) -5.2%
Other 396,000 537,000 141,000 35.6%
Total $ 22,771,000 $ 22,437,000 $ (334,000) -1.5%
OPERATING EXPENSE
Board of Directors $ 86,000 $ 105,000 $ (19,000) -22.1%
General Management 436,000 441,000 (5,000) -1.1%
Administrative Services 1,635,000 1,640,000 (5,000) -0.3%
Conservation 1,134,000 1,086,000 48,000 4.2%
General Services 385,000 490,000 (105,000) -27.3%
Operations 2,801,000 3,019,000 (218,000) -7.8%
GIS/Power Supply 518,000 533,000 (15,000) -2.9%
Purchased Power 11,106,000 10,193,000 913,000 8.2%
Total $ 18,101,000 $ 17,507,000 $ 594,000 3.3%
NET OPERATING INCOME $ 4,670,000 $ 4,930,000 $ 260,000 5.F/
OTHER INCOME (EXPENDITURE)
Interest Income $ 424,000 $ 232,000 $ (192,000) -45.3%
Transfers to Reserves (739,000) (680,000) 59,000 -8.0%
Debt Service (3,616,000) (3,600,000) 16,000 -0.4%
NCPA/WAPA Credit Used - 347,000 347,000
Total $ (3,931,000) $ (3,701,000) $ 230,000 -5.9%
RATE-FUNDED CAPITAL EXPENDITURE $ 1,302,000 $ 1,140,000 $ 162,000 12.4%
NET RATE-FUNDED CASH INFLOW(OUTFLOW) $ (563,000) $ 89,000 $ 652,000
Truckee Donner Public Utility District
Budget vs Actual Revenue& Expenditures PRELIMINARY
Water Department
Fiscal Year Ending December 31,2008
Variance
FY08 FY08 Favorable
Type Budget Actual (Unfavorable) %
OPERATING REVENUE
Residential $ 8,031,000 $ 8,505,000 $ 474,000 5.9%
Commercial 1,031,000 1,174,000 143,000 13.9%
Interdept. Sales 1,000 1,000 0.0%
Other 673,000 730,000 57,000 8.5%
Total $ 9,736,000 $ 10,410,000 $ 674,000 6.9%
OPERATING EXPENSE
Board of Directors $ 83,000 $ 65,000 $ 18,000 21.7%
General Management 368,000 348,000 20,000 5.4%
Administrative Services 1,069,000 1,117,000 (48,000) -4.5%
Conservation 52,000 78,000 (26,000) -50.0%
General Services 70,000 80,000 (10,000) -14.3%
Operations 4,469,000 4,263,000 206,000 4.6%
GIS/Power Supply 203,000 218,000 (15,000) -7.4%
Interdept. Rent 274,000 274,000 0.0%
Total $ 6,588,000 $ 6,443,000 $ 145,000 2.2%
NET OPERATING INCOME $ 3,148,000 $ 3,967,000 $ 819,000 26.0%
OTHER INCOME(EXPENDITURE)
Interest Income $ 147,000 $ 109,000 $ (38,000) -25.9%
Transfers to Reserves (699,000) (681,000) 18,000 -2.6%
Debt Service (2,230,000) (2,226,000) 4,000 -0.2%
Total $ (2,782,000) $ (2,798,000) $ (16,000) 0.6%
RATE-FUNDED CAPITAL EXPENDITURE $ 366,000 $ 608,000 $ (242,000) -66.1%
NET RATE-FUNDED CASH INFLOW(OUTFLOW) $ - $ 561,000 $ 561,000