HomeMy WebLinkAbout11-FY14 and FY15 Budget Presentations Electric & Water OperationsAgenda1i
TRUCK EE D 11 N E
Public Utility District
BUDGET
To:
Board of Directors
From:
Robert Mescher
Date:
October 02, 2013
Subject: FY14 and FY15 Budget Presentations:
a) Operating/Capital Budget: Electric Operations
b) Operating/Capital Budget: Water Operations
1. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the preparation process of the FY14 and FY15 Budget.
2. HISTORY
District Code requires the District to prepare a two-year budget.
BUDGET PROCESS SCHEDULE
September 4, 2013
• Discussed the budget objectives, goals, assumptions, and debt
September 18, 2013
• Presented the Purchased Power Plan
• Discussed CEC Changes to the Renewable Portfolio Standard (RPS)
• Reviewed the Proposition 218 process for water rates
October 2 (Tonight)
• Discuss the Electric and Water Utility operational and capital budgets
October 16, 2013
• Discuss the supporting services operational and capital budgets
• Discuss the projected reserve fund balances
• Review revenue, rates, fees, and charges
• Present a draft summary of FY14 and FY15 Budget
• Present a draft 10-year Financial Master Plan
• Set a public hearing date for the budget
November 6, 2013
• Present a water rate study (HDR Engineering, Inc.)
• Set a public hearing for water rates
• Present the draft FY14 and FY15 Budget and Financial Master Plan
• Conduct a public hearing regarding the FY14 and FY15 Budget
November 20, 2013
• Consider adopting the FY14 and FY15 Budget with the overhead allocation
rates and Purchased Power Plan
January 15, 2014
• Hold a public hearing regarding water rates
• Consider adopting an ordinance for water rates effective after February 14
BUDGET ASSUMPTIONS
At the September 4, 2013 Board Meeting, staff presented the following budget
assumptions:
• Annual inflation is expected to be 3%
• New development activity will increase
• No new debt
• No planned electric rate increase in FY14 & FY15
• Estimated water rate annual increase of 3% in FY14 & FY15
• $5 monthly water meter surcharge (7.5%) ends December 31 s'
• 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 employee restored in FY15
3. NEW INFORMATION
Budget Highlights for Electric & Water Departments
Electric Department
• No rate increase
• Budgeted revenue flat in FY14; 1 % increase in demand in FY15
• No other significant changes in year-to-year expenses
• Focus will continue on system maintenance, Master Plan projects, SCADA
Reliability Improvement project, and the reliability of Donner Lake substation
• New construction is anticipated to increase compared to recent years
Water Department
• Estimated annual rate increase of 3% in FY14 and FY15
• Budgeted revenue increased 1 % in demand in FY14 and FY15
• No significant changes in year-to-year expenses
• Focus will continue on the water SCADA project, meter installations, and a
water main project in FY14
Reorganization of Power Supply/GIS departmental expenses
• Name will change to IT/GIS department
• Power supply expenses will be charged to the Electric Operations department
• All departmental information technology (IT) costs will be charged to the IT/GIS
department
• 2013 budget and actual results were normalized to account for these changes
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