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HomeMy WebLinkAbout9, Budget FY14 and FY15Bud et Item #9 • Consideration of Approving the FY14 and FY15 Budget a) Adopt Budget b) Adopt Purchase Power Plan c) Approve Transfers November 20, 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 • 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 (tonight) • Consider adopting budget N 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 - One Work Order employee restored in FY15 5 Comparison of FY14 Budget to FY13 Budget (in thousands) Less. Debt Service Capital Projects T4 Reserves Surplus (Deficit) a 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) FY 14 Budget - DRAFT FY 15 Budget - DRAFT % "Variance Electric Water Total Electric Water Total Electric Water 'Total Revenue $ 23,330 $10,800 $34,130 $ 23,560 $11,213 $ 34,773 1 % 4% 2% Expenses 20,390 7,590 27,980 20,910 7,850 28,760 3%A 3% 3%, Income $ 2,940 $ 3,210 $ 6,150 $ 2,650 $ 3,363 $ 6,013 Plus: From Funds 2,380 2,850 5,230 2,000 2,770 4,7'70 -16% -3% -9% Less. Debt Service 860 3,320 4,180 890 3,330 4,220 3% 0% 1% Capital Projects 3,540 2,590 6,130 2,850 2,653 5,503 -19%© 2% -10% To (Reserves 920 150 11070 910 150 1,0�60 -1 % 0% -1 % 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 Proposed Resource Portfolio - FY14 and FY15 Payson 5-Year P Purd UAMPS Pool wl_� #—__ o% o%ni 41.8% Fallon Exchange 9 2.7% Fiscal Impact • No electric rate increases are proposed • An annual 3% water rate increase is proposed in FY14 and FY15 - A public hearing is scheduled on January 15, 2014 regarding the proposed increase - The $5 monthly water meter surcharge ending in FY13 is an average 7.5% decrease • Staff is proposing a balanced budget for FY14 and FY15 Recommendation • Approve the Resolution 2013-24 to adopt the FY14 and FY15 Budget and overhead allocation • Adopt the FY14 and FY15 Purchase Power Plan • Approve the related budgeted transfers 11 12 Budgeted Transfers - Electric Capital Vehicle General Fund AB 32 Reserve Rate Reserve Replacement Reserve FY114 Vehicle Replacement Contribution (174,454) 174,454 Rate Reserve Annual Contribution (422,305) 422,305 Capital Reserve Annual Contribution (3119,178) 319,178 AB 32 Cap & Trade Proceed Utilization 862,562 (862,662) FY15 Vehicle Replacement Contribution (179,887') 179,687 Rate Reserve Annual Contribution (426,527) 426,527 Capital Reserve Annual Contribution (300,274) 300,274 AB 32 Cap & Trade proceed Utilization 860P0 (860,000) Total Transfer To (From) Funds $ (99,863) $ (1,722,562) $619,462 $ 848,832 $ 354,141 13 Budgeted Transfers -Water Vehicle Donner Lake General Fund Replacement Assessment Reserve District FY14 2006,Certificates of Participation Debt Service Payment 99,984 (99,984) Vehicle Reserve Fund Annual Contribution (146,316) 146,316 FY15 2006 Certificates of Participation Debt Service Payment 99,145 (99,145) Vehicle Reserve Fund Annual Contribution (1 50�,706) 150,706, I Total Transfer To (From) Funds I $ (97,893)1$ 297,0221 $ (199,129)l 14 �i/ii� I "o//i'% / '�% �, �� ,, ;� %1 �,; ,, ., i Water Projected • (in thousands) 1M • 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 �.,�, ■ �i/ii� I "o//i'% / '�% �, �� ,, ;� %1 �,; ,, ., i