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Home My WebLink About11, Board Presentation Electric & Water OperationsBudget Item #11 FY14 & FY15 Budget a) Operating/Capital Budget: Electric Operations b) Operating/Capital Budget: Water Operations October 2, 2013 Budget Process Schedule September 4 • Mission, goals and objectives • Budget assumptions • Organization chart • Labor • Existing debt September 18 • Purchased Power Plan • RPS definition change by CEC • Overview of Prop 18 process 2 Budget Process Schedule October 2 (tonight) • Electric and Water operational and capital budgets October 16 • Support services operational and capital budgets • Revenue, rates, fees and charges • Financial Master Plan • Electric and Water reserves • Set public hearing date for budget 3 Budget Process Schedule November 6 • Draft FY14 & FY15 Budget • Financial Master Plan • Water Rate Study • Public Hearing — Draft budget • Set public hearing date for water rates November 20 • Consider adopting budget N Budget Process Schedule January 15 • Public Hearing — Water rates • Consider adopting water rate ordinance February 15 • Water rates can become effective 5 Background / History • District Code requires the District to prepare a two-year budget • On September 4, Staff presented the following 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 31St - Estimated labor rate increase of 2% in FY14 - Estimated labor rate increase of 3% in FY15 - One IT employee added in FY14 6- One Work Order employee restored in FY15 District Average Annual Spending Infrastrucl $6 Establishing Reserves - $1.8N 5% Public Information & Conservation Programs - $1.51"rll, 4% Supplies, (Material & Other - $3.UIM, 8%u $6.7M, 18% A Power - A, 27'% final Labor - M, 21 Electric Department New Information • Electric Utility revenue — No rate increase — Budgeted demand flat in FY14; 1% increase in FY15 • Reorganization of Power Supply/GIS departmental expenses — Department name changed to IT/GIS department — All District IT costs and responsibilities consolidated into one department — Provides for better management of IT resources — The 2013 budget and actuals normalized to account for these changes New Information • Electric Operations — System maintenance — Tree trimming — High level of RPS • Electric Capital Projects — Master Plan — SCADA Reliability Improvement — Donner Lake Substation — New construction anticipated to increase compared to recent years Electric Department Comparison of FY13, FY14 and FY15 Budgets (in thousands of dollars) Budgets Wariance FY114 FY15 VS. vs. FY13 FY14 FY15 FY13 FY14 Operating Exlpenses $ 31134 $3126 3,40 4% 4% Maintenance Expenses 468 459 483 -°% 5% Total O&M Expenses $ 3,602 $3,7'28 $ 3,892 % 4% Capital Expenditures 2,675 2,565 2,636 4% 01% 3% 4% Total Department Expenditures $ 6,277 $ 6,2913 $ 6,528 11 Electric Department Capital Projects & Equipment (in thousands of dollars) FY14 FY15 Rate Funded Electric (Master Plan Projects $ 484 $ 563 Upgrade Donner Lake Substation 348 809 CAIDA Security 202 - Routine Replacements Poles, Reclosures, Regulators, Transformers, Meters 240 250 Distribution Replacements & Improvements 396 418 Line & Extension Upgrades 264 278 Various District Projects 152 160 Total Rate Funded Projects 21086 23568 Replacement Vehicles funded by Vehicle Reserve 479 68 Total Electric Projects $ 21565 $ 21636 12 Water Department 13 New Information • Water Utility revenue requirements — Estimated water rate annual increase of 3% in FY14 & FY15 — Budgeted demand 1% annual increase in FY14 & FY15 14 New Information • Water Operations — No new employees — Reduced energy costs for pumping due to increased efficiencies and pipeline replacement — Some operational labor shifted to capital projects • Water Capital Projects — Pipeline replacement — Donner view replacement — Pump station replacement — Water meter installations 15 Water Department Comparison of FY13, FY14 and FY15 Budgets (in thousands of dollars) Budgets %Variance FY114 FY15 Vs. Vs., FY13 FY14 FY15 FY113 FY14 Operating Expenses $27261 $2,320 $21383 3% 3% Energy Casts 1,474 1, 36�6 1,367 -111 % 0% Maintenance Expenses 11410 174'O�5 11446 O�% 2% Total O&M Expenses $51145 $5,6�31 $51130 -2% 2% Capital Expenditures 11575 1187'3 11267 19�% 3% -48% -8% Total Department Expenditures $67726 $6)9�O4 $61397 IV Water Department Capital Projects & Equipment (in thousands of dollars) IW&E! I W& Pipeline Replacement $ 11209 $ 421 Donner View Replacement 15 _ Misc Facility Renovation 55 - Pump Station Replacement - 300 Total Rate Funded Projects 19430 721 'water Meters Funded l by Water Meter surcharge 395 450 Replacement Vehicles funded by Vehicle Reserve 48 Total rater Projects 19873 19267 17 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 Recommendation Review this report and provide comments