The URL can be used to link to this page

Home My WebLink About10, Budget FY14 and FY15Public Hearing # 7 Budget Item *10 FY14 and FY15 Budget a) FY14 and FY15 Budget Summary b) Ten - Year Financial Master Plan November 6, 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 • 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 (tonight) • Draft FY14 & FY15 Budget and Financial Master Plan • Public Hearing —Draft budget • Water Rate Study —Shawn Koorn, HDR • 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 Overhead Allocations • Overhead allocation rates are used to allocate indirect expenses (overhead) to work orders, departments, etc. • Indirect expenses are impossible or impractical to assign to a specific job, function, work order, etc. • Overhead allocation rates are no indication of efficiency or inefficiency, but merely a factor used to allocate indirect expenses • Allocation method is the same as prior budgets except Inventory Overhead has been eliminated and combined with Administration Overhead 7 Existing and proposed overhead allocation rates OverheaIII IIIIIIIIIIIIII d Type III hI rll II III T(a n s P o rt a t i o n .......................................................... .............. ...... ............ .......... .......... ........... ............ ............ ........... ...... .. ........... .......... AdministratII ion Po n s t r..0 c t i o n �� Note: Beginning FY14, inventory overhead will be consolidated with administration overhead Comparison of FY14 Budget to FY13 Budget (in thousands) Less. Debt Service Capital Projects T4 Reserves Surplus (Deficit) FY 13 Budget FY 14 Budget - DRAFT %® Variance Electric Water Total Electric "later Total Electric Water Total $ 23,240 $10,910 $ 34,150 $ 23,330 $10,800 $ 34,130 0% -1 % 0%m 19,990 7,7110 27,700 20,390 7,590 27,9'80 2% -2% 1 % $ 3,250 3,200 $ 6,450 $ 2,940 $ 3,210 6,150 3,300 4,450 2,380 2,85iO 5,230 890 i 62 r 4.0 4,210 • 2,080 .2220 N 0 • • M 107% -14% 18% -3% 0% -1 % 22% 1% 33%m 48% -90% -49% Comparison of FY15 Budget to FY14 Budget (in thousands) Revenue Expenses Income Less. Debt Service Capital Projects To IReserves Surplus (Deficit) �XAIKIMNNMMD _ $23,330 $10,800 $34,130 20i,390 7,590 27,980 1 $ 3,210 $ 6,150 860 3,320 4,180 N 2,590 6,130 920 150 11070 III Budget wl Water $ 23,560 $11,213 $ 34,773 20,910 7,85'4 28,7'60 $ 2,650 $ 3,363 $ 6,013 a Electric Water 'Total 1% 4% 2% 3% 3% 3% f!N 2,770 ! `� W % a 890 3,330 4,220 N 2,65,3N 910 r N N �i/ii� I "o//i'% / '�% �, �� ,, ;� %1 �,; ,, ., i Water Projected • (in thousands) 1M • Fiscal Impact • This public hearing and budget workshop are part of the overall budget process that will affect the District's spending for the next two fiscal years • The Finance Master Plan validates that the proposed FY14 and FY15 Budget is consistent with the District's long-term goals 13 Recommendation Provide comments to staff 14 15 �i/ii� I "o//i'% / '�% �, �� ,, ;� %1 �,; ,, ., i 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 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) 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 901 T 1 YrEnd • r Mw M 8 $ (394) (450) N Y n R • Ic "M 4700FI, 11 - ll YY ID R �,Y "� ,Y �.,�, ■