HomeMy WebLinkAbout8-Discussion of FY14 & FY15 Budget_ Objectives, Goals, Assumptions, Labor, and Existing DebtAgenda •
DONNER
47TRUCKEE
Public Utility itrict
BUDGET
To:
Board of Directors
From:
Robert Mescher
Date:
September 04, 2013
Subject:
Discussion of FY14 & FY15 Budget: Objectives, Goals,
Assumptions, Labor, and Existing Debt
1. WHY THIS MATTER IS BEFORE THE BOARD
This item begins the formal process for preparation of the FY14 & FY15 budget.
2. HISTORY
The approved FY13 Budget for the Electric Department provided for $23.2 million
revenue and $1.2 million in transfers from other funds. Total budgeted expenditures
were as follows: $20.0 million operating expenses, $0.9 million debt service, $0.6
million transfers to reserves, and $2.9 million capital projects.
The approved FY13 Budget for the Water Department provided for $10.9 million
revenue and $3.4 million in transfers from other funds. Total budgeted expenditures
were as follows: $7.8 million operating expenses, $3.3 million debt service, $1.5 million
transfers to reserves, and $1.7 million capital projects.
3. NEW INFORMATION
SCHEDULE
The schedule for the budget process is as follows:
September 4 (Tonight)
• Discuss the objectives, goals, assumptions, labor and debt
September 18
• Discuss the Purchased Power Plan
• Overview of the Prop 218 process
October 2
• Discuss the operating and capital budget for the Electric and Water Utilities
October 16
• Discuss the operating and capital budgets for supporting services
• Reserve funds
• Revenue, rates, fees and charges
Nnvamhar F
• Present the Financial Master Plan
• Present a draft of the FY14 & FY15 Budget
• Hold a public hearing regarding the budget
• Present an updated water rate study
November 20
• Adopt the FY14 & FY15 Budget
January 15
• Hold a public hearing regarding the water rates
OBJECTIVES AND GOALS
Attachment 1 is the District Code, Title 1, Mission Statement, Objectives and Goals.
The District has performed well in achieving these goals. Here are some examples:
The District provides a healthy and safe work environment. The District has
gone more than two years without lost -work injuries and the insurance
experience modifier rate has decreased from 1.74 in 2008 to 0.73 in 2013,
greatly reducing the workers compensation premium.
The District provides effective and efficient maintenance and replacement
programs. The District has had very few electric and water outages, and the
outages that occurred were for relatively short periods of time. Extensive tree
trimming and pipeline replacements have enhanced the reliability of the electric
and water distribution systems.
The District provides effective, efficient, and safe operations programs. The
District created an outstanding electric safety demonstration, called Learn or
Burn.
The District has developed appropriate financial procedures to assure
responsible financial management, as evidenced by the excellent audit results
year after year.
The proposed FY14 & FY15 Budget will be consistent with District Code.
ASSUMPTIONS
The FY14 & FY15 Budget will be similar to the FY12 & FY13 Budget. As compared to
the prior budget, the assumptions and proposed changes are:
• Customer electric rates will not be increased in FY14 & FY15
• Customer water rates may be increased about 3% in FY14 and in FY15
• The $5 monthly water meter surcharge will end December 31, 2013
• New development activity will increase
• Inflation will increase costs of supplies, materials and services by 3% in FY14
and in FY15
-W_1:101 N
Labor rates are estimated to increase 2% in FY14 and 3% in FY15. Staffing is
proposed to be the same as FY13 except for one additional employee to be added
each year. In FY14, an IT employee will be added to provide support for the District's
administrative computers. In FY15, a work order clerk position will be restored if new
development recovers as expected.
EXISTING DEBT
No new debt will be incurred. Attachment 2 lists the existing debt and the projected
ending balances as of the end of FY13, FY14 and FY15.
4. FISCAL IMPACT
This budget workshop is part of the overall budget process that will affect the District's
spending for the next two fiscal years.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Robert Mescher
Administrative Services Manager
Michael D. Holley
General Manager