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Home My WebLink About10, Financial Master Plan, Projected Revenue and ReservesBudget Item #10 Financial Master Plan Review, Projected Revenue, and W 0 W IS I DM - - October 16, 2013 Background / History • Financial Master Plan — Presented to the Board periodically since 2006 — Tool to ensure progress towards Board's long-term financial goals and to identify any challenges — 10-year span 2 New Information • Assumptions — 1% annual customer growth — 3% annual inflation — No staffing changes after FY15 — No new debt — Interest earnings 1 % in FY16, 2% in FY17 & FY18 and 3% thereafter — Continued cash and reserve goal for the Electric Utility • 180 days of annual expenditures • $3 million rate reserve goal • $1 million capital replacement reserve — Continued $7 million reserve goal for the Water Utility 3 Electric Financial Master Plan (thousands) ELECTRIC FY14 FY15 FY16 FY117 FY18 FY'19 FY20 FY 1 FY22 FY23 Net Income 3,119 $ 2,830 $ 2„695 $ 2,446 $ 11,862 $ 1,949, $ 1,899 $ 2,333 $ 2,779 $ 2,995 Cap & Trade Proceeds 863 860 860 860 860 860 860 0 0 0 Facility Fees 105 105 150 150 150 150 150 150 150 150 Rate funded capital projects (3,544) (2,851) (2„919) (2„988) (2,892) (2,456) (2,530) (2,606) (2„684) (2,765) Change in Operating Cash $ 543 $ 944 $ 786 $ 468 $ (20) $ 503 $ 379 $ (123) $ 245 $ 380 Cash & Reserve Balances $12,728 $13,672 $14,458 $14,926 $114,905 $15,408 $15,785 $15,662 $15,906 $16„287 Change! M% 0.0% 0.0% 0.0% 11.0% as gala µ 0„r 2.0%I e"v"", " Water Financial Master Plan (thousands) WATER FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Net income $ 2,217 $ 2,419 $ 2,695 3,034 $ 3,274 $ 3,572 $ 3,844 $ 4,126 $ 4,448 $ 4,731 Facility flees less allocated debt 262 279 301 318 331 414 415 417 419 421 Debt principle payments (1,261) (1,315) (1,362) (1„417) (1.,320) (1„375) (1,437) (1,332) (535) (559) Rate-fuinded capital projects (2,589) (2,653) (2,422) (2,334) (2,400) (2,468) (2,538) (2,609) (3,383) (3,659) Change iin Cash and Reserves $' (1,371) $ (1,270) $ (78'9) (3919) $ (116) $ 143 $ 284 $ 602 $ 949 934' Cash & Reserve Balances $ 7,190 $ 5,919 $ 5,130 4,730 $ 4,616 $ 4,759 $ 5,043 $ 5,646 $ 6,594 $ 7,527 Debt service coverage (1.25 required until 2036) Water Projected • (in thousands) 1M • Projected Reserve Balances Electric Department Projected Reserve Fund Balances (in thousands) Operating Cash Reserve TotalRate Reserve g Reserves Capital Replacement Fund Total Capital Reserves FY13 Yr End (est) $ * 0 3,1120 FYI 5 Yr End Goa. i► 107000 31!969 31000 0 • MI 0 Water Department Projected Reserve Fund Balances (in thousands) *peratingCashReserve Debt Service Coverage Total Operating Reserves • . R_• • Reserve Water Total Capital ` � f T 1 YrEnd • r Mw M 8 $ (394) (450) N Y n R • Ic "M 4700FI, 11 - ll YY ID R �,Y "� ,Y �.,�, ■ Fiscal Impact • The Finance Master Plan validates that the proposed FY14 and FY15 Budget is consistent with the District's long-term goals 11 Recommendation Receive this report and provide comments to staff 12 13 Comparison of FY14 Budget to FY13 Budget (in thousands) enu 4roil' . Plus: From Funds Less: Debt Service Capital Projects To Reserves Surplus (Deficit) 14 BuElectric -Ulater Total dget "yin r, r • 1 r $34150 r 71710 rr $3,250 $3,200 $6,450 mia * r Mi 'r lr r ;.r 1,720 4,610 620 11460r r FY 'Budget DRAFT Ilectri+ U!ater ToJkql rr r »,» r 8 r. r alur r 201390 •r 27P980 $2,940 $3,210 $6p15O r • y r � • r ails �1M r ui 4 � r I�ap • 3,540 2,590 6,130 920 150 11070 % Variance IElectric Water Total n% -1 % 0% 2% -2% 1 % 1O17% -14% 18% -3% 0% -1 % 2% 51 % 33% 48% -90% -49% Comparison of FY15 Budget to FY14 Budget (in thousands) Revenue r •rr- Plus: From Funds Less: Debt Service Capital Projects To Reserves Surplus (Deficit) 15 BudgetDRAFT Electric Water Total "yin c 3r a.., r: r r $34130 r •r 71590:ry rr , JI r f�.,a r r.M , 'r 2,380 2,850 5,230 mia . r Mi 'r Ir J r r 3,54:0 2,590 6,130 • r 150 1)0170 FY 15 Budget - DRAFT Electric Water Total $231560 $11,213 $34,773 201910 7,850 23,760 M. ., r rr ra • r 2,000 2,770 4,770 . , $ r $r r r 910 150 11060 % Variance IElectric Water Total 1 % 4% 2% 3% 3% 3% -16% -3% -9% 0% 1 % 2% -10% 0% -1 % 2011 Electric Financial Master Plan — Projected Reserve Balance Projected Rate Increases 2% for 2 Years, 1% for Remaining Years (thousands) 16 2011 Water Financial Master Plan — Projected Reserve Balance Projected Rate Increases 3% for 3 Years, 2% for Remaining Years (thousands) 17