HomeMy WebLinkAbout14-Review of District Financial Goals, Reserves and Debt; and Budget Process OverviewMQ
TRUC EE D 11 NE
Public Utility District
WORKSHOP
To: Board of Directors
From: Robert Mescher
Date: August 21, 2013
Subject: Review of District Financial Goals, Reserves and Debt; and Budget
Process Overview
1. WHY THIS MATTER IS BEFORE THE BOARD
This is an annual review with the Board of the status of its Financial Goals as outlined
in Title 3.01.01.1 of the District Code and an overview of the budget process.
2. HISTORY
In 2004, the Board adopted a set of Financial Goals. The status of the Financial Goals
was last reviewed with the Board on August 1, 2012. The Board has directed that
these Financial Goals be reviewed each year.
3. NEW INFORMATION
Attachment 1 lists all of the District Financial Goals and whether the goal was
achieved or not. All of the District Financial Goals have been achieved with the
exception of the following:
Debt Goals
The goal of committing to debt service no more than one half of the projected
annual Water facilities fees was not achieved. The Water facilities fees have
declined and are less than the committed facilities fees.
Cash Reserve Goals
The goals of retaining an Electric cash reserve equal to on half of the annual
operating expenses and an Electric Rate Stabilization Fund of $3,000,000 were
not yet achieved. With the maturity of the 2013 COP debt, these goals are
projected to be achieved in 2015.
Capital Reserve Goals
The goal of reserving $4,000,000 for Water capital replacement was achieved
in 2010, but the reserve has been utilized for specific projects as approved by
the Board. Rates continue to fund this reserve and the goal is projected to be
achieved by 2014.
FY14 - FY15 BUDGET PROCESS
The FY14 and FY15 Budget process will begin next month. Staff will present the
following workshops:
9/4/2013
Mission, goals and objectives
Budget assumptions
Organization chart
District labor
District existing debt
9/18/2013
Purchased power plan
10/2/2013
Updated water rate study
Operating and capital budgets of supporting services
10/16/2013
Operating and capital budget of electric and water operations
Reserve funds
Revenue, rates, fees and charges
11 /6/2013
Draft budget
Financial master plan
Public Hearings
Draft budget
The budget will be presented to the Board for consideration of adoption on November
20, 2013.
4. FISCAL IMPACT
There is no direct fiscal impact associated with this item.
5. RECOMMENDATION
Review this report and provide comment.
Robert Mescher
Administrative Services Manager
Michael D. Holley
General Manager