HomeMy WebLinkAbout7-Draft FY14 and FY15 Budget Public HearingAgenda Item # 7
PUBLIC HEARING
To:
Board of Directors
From:
Robert Mescher
Date:
November 06, 2013
Subject: Draft FY14 and FY15 Budget Public Hearing
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board traditionally holds a Public Hearing before adopting the District's budget
and overhead rates.
2. HISTORY
District Code requires the District to prepare a two-year budget.
BUDGET PROCESS SCHEDULE
September 4, 2013
• Discuss the budget objectives, goals, assumptions, and debt
September 18, 2013
• Review the Purchased Power Plan
• Discuss CEC Changes to the Renewable Portfolio Standard (RPS)
• Review the Proposition 218 process for water rates
October 2, 2013
• Discuss the Electric and Water Utility operational and capital budgets
October 16, 2013
• Set a public hearing date for the budget
• Discuss the supporting services operational and capital budgets
• Review a draft summary of FY14 and FY15 Budget
• Review a draft 10-year Financial Master Plan
• Review revenue requirements
• Discuss the projected reserve fund balances
November 6 (tonight)
• Receive the draft FY14 and FY15 Budget and Financial Master Plan
• Conduct a public hearing regarding the FY14 and FY15 Budget
• Receive a water rate study (HDR Engineering, Inc.)
• Accept a draft ordinance to set water rates
• Set a date for a public hearing regarding water rates
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,
2014
BUDGET ASSUMPTIONS
At the September 4, 2013 Board Meeting, staff presented the
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 st
• 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
Attachment 1 is a summary of the FY14 and FY15 Budget.
following budget
3. NEW INFORMATION
The hearing was advertised in the Sierra Sun on October 30th for the November 6th
public hearing.
4. FISCAL IMPACT
The is no material fiscal impact associated with this Public Hearing.
5. RECOMMENDATION
Conduct the public hearing and receive public comment.
Robert Mescher
Administrative Services Manager
Michael D. Holley
General Manager