HomeMy WebLinkAbout8, Budget Objectives GoalsBudget Workshop Item * 8
FY14 & FY15 Budget:
Objectives, Goals., Assumptions.,
Labor and Existing Debt
September 4, 2013
Budget Schedule
• September 4 (tonight)
— Discuss objectives, goals, assumptions, and debt
• September 18
— Review the Prop 218 process
— Present Purchased Power Plan
• October 2
— Discuss operating and capital budgets of Electric & Water Utilities
— Review reserve funds
• October 16
— Discuss operating and capital budgets of supporting services
— Review revenue, rates, fees and charges
— Present a draft Financial Master Plan
2
Budget Schedule
• November 6
— Review the Financial Master Plan
— Present an updated water rate study
— Present a draft of the FY14 & FY15 Budget
— Hold a public hearing regarding the budget
• November 20
— Consider adoption of the FY14 & FY15 Budget
• January 15
— Hold a public hearing regarding water rates, if rate increase proposed
3
Background /History
Prior Budget - FY1 3 Approved Budget Highlights
(in millions of dollars)
Total
Electric
Water
District
Operating Revenue & Investment Earnings
$
23.2
$10.9
$34.1
Transfers from Other Funds
1.2
3.4
4.6
Total Source of Funds
$
24.4
$14.3
$38.7
Operating Expenses
$
20.0
$ 7.8
$27.8
Debt Service
0.9
3.3
4.2
'Transfers to Reserves
0.6
1.5
2.1
Capital Projects
2.9
1.7
4.6
Total Use of Funds
$
24.4
$14.3
$38.7
0
Prior Budget - FY13 Electric Expenses
_. . ..', . .. . .
W.
Prior Budget - FY13 Water Expenses
Reserves, 6%
am
M.
Background / History
Summary of Objectives and Goals
• Actively seek renewable energy sources as set forth in the
Renewable Portfolio
• Provide reliable and high quality water and electrical power
service
• Manage District resources in an open, responsible,
environmentally sound manner at the lowest practical cost
7
Background / History
• Utility rates have not increased since January 2009 for
electric and January 2011 for water
— Water rate increase for FY12 & FY13 was deferred
— Compounded inflation since 2009 is over 11%
2009
2010
2011
2012
2013
Comp�ou nded
Electric 3.00%
0.00%
0.0�0%
0.00%
0.:0 %
:. 0
Water 0.00%
1.75%
1.75%
0.00%
0.00%
3.53
�w �!"� ••'��� Ewa �,�"��r '�''1"M
New Information
• Annual inflation is expected to be 3%
• New development activity will increase
• No new debt
• No planned electric rate increase in FY14 & FY15
• Water rates:
— Estimated annual increase of 3% in FY14 & FY15
— $5 monthly water meter surcharge (7.5%) ends December 31St
• Labor:
— Estimated labor rate increase of 2% in FY14
— Estimated labor rate increase of 3% in FY15
— One IT employee added in FY14
— One Work Order emploee restored in FY15
Administrative
TDPUD Customers
Board of
General
Executive HR Manager
Secretary
Public Special Assist GM /
Information Programs Elec Utility /
Water Utility
Buyer Clerk
Warehouse
Jtilitv Worke
11
Administrative
Accounting Senior Customer Work Order
Accounting Customer Billing Meter Reader
Customer Billing Meter
Public Information
& Conservation
Conservation
Programs
12
Conservation
Programs
Customer Service
Representative
Superintendent
Substation
Foreman
Foreman
Forman
Lineman
Li n e Crew
Line Crew
Service Cre
..................
Linemen
.
Linemen
.................. I ............
Lead
Lineman
A . pprentice
A . pprentice
Lineman
13
Operations
Leadman
Service
14
Water Utility
Manager
Superintendent
Distribution
Leadman
Service
System
Quality &
New Information
Projected Debt Balances (in millions of dollars)
FY13 FY14 F5
Electric MUll
Pension Obligation Bond $ 6. 7 $ 6.2 $ 5.
` ic Utility Debi $ 6.7 $ 6.2 5.
2006 CO - Pipeline Replacement
$21-1020.
$ 9.
State Revolving Fund - Donner Lake
Dept of Water,Resources 1,996
2.0
1.8
1.5
SSG 55 - Glenshire Water, System
0.6
01.5
0.3
SG 1551 _ Bridge Barest Tank
0.5
0.4
0.3
Total Water Utility Debt
32.
$30.8
$ 2.
15
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
16
Recommendation
Review this report and provide comments
17