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Home My WebLink About9, Budget Supporting Departments and OverviewBud et Item #9 • FY14 and FY15 Budget a) Board and General Management b) Administrative Services c) Public Information & Conservation d) ITIGIS e) District Budget Overview October 16, 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 • Electric and Water operational and capital budgets October 16 (tonight) • Set public hearing date for budget • Support services operational and capital budgets • Budget summary • Financial Master Plan • Revenue requirements • Electric and Water reserve balance projections 3 Budget Process Schedule November 6 • Water Rate Study — Shawn Koorn, HDR • Set public hearing date for water rates • Draft FY14 & FY15 Budget and Financial Master Plan • Public Hearing — Draft budget 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 Background / History • Costs of supporting services are shared between Electric and Water — Board of Directors and General Management — Administrative Services — Public Information & Conservation — IT/GIS 7 BOARD OF DIRECTORS AND GENERAL MANAGEMENT New Information - Board of Directors and General Management • $15,000 additional election expense every other year • $21,000 increase in miscellaneous expense primarily due to demographic changes of medical plan participants and industry meetings • No capital expenditures ADMINISTRATIVE SERVICES New Information -Administrative Services • $60,000 decrease in bad debt expense • $40,000 decrease in meter reading expense • $20,000 decrease in office supplies • $8,000 decrease in miscellaneous expenses • Work order position restored in FY15 if construction increases • No capital expenditures 11 PUBLIC INFORMATION & CONSERVATION 12 New Information - Public Information & Conservation • $53,000 decrease in electric conservation programs • $35,000 decrease in water conservation programs • $10,000 capital project to design improved warehouse lighting 13 IT/ GIS 14 New Information - IT/ GIS • Reorganization of Power Supply/GIS expenses — All District IT costs and responsibilities consolidated — Provides for better management of IT resources — The FY13 budget and actuals normalized • $115,000 increase primarily due to one additional employee • $1,601,000 and $890,000 in FY14 and FY15 capital projects — Increase of $430,000 over FY13 to improve reliability of the District's SCADA and communication systems 15 Comparison of Supporting Department Budgets (in thousands) FY15 vs r Operating Admin Services Operating Public information • Conservation Operating r r Operating 16 Comparison of FY14 Budget to FY13 Budget (in thousands) enu 4roil' . Plus: From Funds Less: Debt Service Capital Projects To Reserves Surplus (Deficit) 17 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) 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 % 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 901 21 IT/ GIS Capital Projects Project Title 2014 2015 2014 2015 Total AutoCad Upgrade $ 15,000 $ - $ 15,000 $ - $ 30,000 Communication Upgrade - Phone System $ 157,427 $ _ $ - $ _ $ 157,427 Communication Upgrade - Radios $ 232,704 $ - $ - $ - $ 232„704 Communication Upgrade - Unification $ 77,0172 - $ - $ - $ 77,072 Data/SCADA Huts $ 150„076 $ - $ - $ - $ 150„076 Digital Media Extension $ 13„936 $ 6,397 $ 13,936 $ 6,397" $ 401,666, Electric AMI $ - $ 41,975 $ - $ 41,975 Network. Infrastructure Development $ 53,273 $ 64,656 $ - $ - $ 118,129 NISC Smart Huh $ 4,816 $ $ 4,816 $ - $ 9,632. SCADA Operations Center $ - $ 7,655 $ - $ 7„655 $ 15„311 SCADA Reliability Improvement $ 165,090, $ - $ 165,090 $ - $ 3301,179, SCADA Replacement Project $ - $ - $ 502,713 $ 587,089 $ 1,089,802. SCADA Site Security Camera Project $ 4,452 $ 84,079 $ 4,452 $ 84,079 $ 177,062 USA Ticket Integration $ 10,6691 $ - $ 10„669 $ - $ 21,338 Total 884„515 $ 204,963 $ 716,675 $ 685,221 $ 2,491,374 22