HomeMy WebLinkAbout15 2009 Budget Agend-a Item # 12
Public Utility District
WORKSHOP
To: Board of Directors
From: Bob Mescher
Date: September 17, 2008
Subject: 2009 Budget: Mission Goals and Objectives; Budget Assumptions;
District Labor; District Existing Debt
1. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the process for preparation of the 2009 budget.
2. HISTORY
Changes affecting the FY 08 Budget:
• The electric rates were increased 7% and water rates were increased 3%for FY 2008
• Direct labor increased based upon the approved union contract
• No additional debt was incurred
• The solar initiative SB-1 began in 2008
• No new broadband revenue or expenditures were planned
• An additional Customer Service Manager was budgeted
• Public benefit programs were substantially increased
• Funding to the reserve accounts was increased
3. NEW INFORMATION
The assumptions and proposed changes in the FY 2009 Budget are:
• Direct Labor Costs
• Overtime will be decreased 5%from the 2008 Budget
• Bargaining unit employees will increase by 4% per contract
;taffing
Rates of pay for non-union employees will increase based on CPI
• level changes include one additional full-time position, and a reduction of one
part-time position both in the Electric Department
• There are no planned changes to broadband expenses and revenue
• Most other expenses will remain the same or decrease except for new programs such
as additional conservation and public benefit programs
• No new debt will be incurred except for water meter financing
• Cost Center 5 - the General Services Department has been eliminated; associated
costs and budget have been allocated to other cost centers; the 2008 Budget will be
normalized when compared to the 2009 Budget
• A vehicle replacement reserve fund is planned
4. FISCAL IMPACT
The fiscal impact is yet to be determined.
5. RECOMMENDATION
Receive this report and provide comments to staff.
MaryCha n Michael D. Holley
'r
Administrative Services Manager General Manager