HomeMy WebLinkAbout14 FY10 FY11 Budget Goals Agenda Item # 14
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Public Utility District
BUDGET
To: Board of Directors
From: Bob Mescher
Date: September 16, 2009
Subject: Discussion of FY10 & FY11 Budget: Objectives, Goals,
Assumptions, Labor, and Existing Debt
1. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the process for preparation of the FY10 & FY11 budget.
2. HISTORY
The approved FY09 Budget for the Electric Department provided for $23.8 million
revenue and $1.1 million in transfers from other funds, and using those funds as
follows: $18.7 million operating expenses, $3.5 million debt service, $0.6 million
transfers to reserves, and $2.1 million capital projects.
The approved FY09 Budget for the Water Department provided for $10.7 million
revenue and $10.0 million in transfers from other funds, and using those funds as
follows: $6.9 million operating expenses, $3.5 million debt service, $1.7 million
transfers to reserves, and $8.6 million capital projects.
The approved FY09 Budget allotted 71 full-time equivalent (FTE) employees, 38 FTE
employees for the Electric Department and 33 FTE employees for the Water
Department. FTE's are calculated based on total labor hours divided by 2,080 hours.
3. NEW INFORMATION
Attachment 1 is a draft revision of the District Code, Title 1, Mission Statement,
Objectives and Goals for your review and comment. Title 1 was last reviewed and
updated on March 5, 2008. In the attached draft, the word "adequate" has been
stricken in five places. Further, staff has recommended that a new goal be added.
5.6 Provide key leadership in the stewardship of the District's aquifer,
watershed, and natural infrastructure.
Staff is ensuring that the FY10 & FY11 Budget will be consistent with Title 1 of the
District Code.
The FY10 & FY11 Budget will be similar to the FY09 Budget. As compared to the
FY09 Budget, the assumptions and proposed changes in the FY10 & FY11 Budget
are:
• Labor Rates are estimated to be flat in FY10 and increased an estimated 3% in
FY11 (actual rates will depend on union contract negotiations)
• Staffing level changes include a reduction in four full-time positions through
attrition
• Three reductions in Electric
• One reduction in Water
• 67 total FTEs in FY10 & FY11
• The District's fiber assets will provide an additional revenue source
• Most other operational expenses will remain flat or slightly increased, ranging
from 0% to 3% per year
• No new debt will be incurred
Attachment 2 is the proposed FY10 & FY11 organization chart that incorporates the
changes previously discussed.
4. 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.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Mary Cha an - Michael D. Holley
Administrative Services Manager General Manager
Attachment 1
TITLE 1 — PROPOSED REVISION 09/16/2009
GENERAL PROVISIONS
CHAPTERS:
1.01 Introduction
1.05 Mission Statement
CHAPTER 1.01
INTRODUCTION
These policies and regulations are intended to provide a comprehensive description of the manner
in which the District operates and serves its customers and shall be followed and adhered to by all
District staff and persons and entities doing business with the District.
As in any set of policies and regulations, not all circumstances can be envisioned. The Board of
Directors of the Truckee Donner Public Utility District shall apply and interpret these policies and
regulations fairly and consistently,taking into consideration any unique or unusual circumstances on
a case by case basis.
CHAPTER 1.05
MISSION STATEMENT
Sections:
1.05.010 Mission Statement
1.05.020 Objectives
1.05.030 Goals
1.05.010 Mission Statement: The Mission of Truckee Donner Public Utility District is to provide
adequate, reliable and high quality water and electrical power services, and to manage District
resources in an open, responsible, environmentally sound manner at the lowest practical cost. In
pursuing this Mission,the District will aggressively pursue renewable energy sources as set forth in
its Renewable Portfolio Standard (Chapter 7, Electric).
1.05.020 Objectives:
1. Responsibly serve the public.
2. Provide a healthy and safe work environment for all District employees.
3. Provide aR adequate reliable and high quality water supply and distribution system to meet
current and future needs.
4. Provide an adequateT reliable and high quality electric supply and distribution system to meet
current and future needs.
5. Manage the District in an environmentally sound manner
6. Manage the District in an effective, efficient and fiscally responsible manner.
Title 1 Pagel
Attachment 1
1.05.030 Goals:
1. Responsibly serve the public.
1.1. Conduct the District's business in a legal, ethical, open, and transparent manner.
1.2. Implement a proactive public outreach program.
1.3. Promote communication and cooperation with other public and private agencies.
1.4. Develop and implement high standards of customer service.
1.5. Develop and implement high operational standards, procedures and Codes of Conduct.
2. Provide a healthy and safe work environment for all District employees.
2.1. Reduce the OSHA reportable injury frequency and severity rates relative to previous
reporting year.
2.2. Comply with all Sate and Federal regulations regarding worker safety.
2.3. Maintain the District's wellness program.
2.4. Reduce employee injuries by maintaining an active and effective safety program.
3. Provide an adequate-, reliable and high quality water supply and distribution system to meet
current and future needs.
3.1. Maintain and implement a current Urban Water Management Plan which includes current
and future projections of water quality, demand, and supply.
3.2. Maintain and implement a current Water Master Plan, including the required facilities to
meet current and future demand and supply.
3.3. Secure the necessary water rights and other legally required documentation.
3.4. Conduct effective and efficient operations, maintenance, and replacement programs.
4. Provide an adequate-, reliable and high quality electric supply and distribution system to meet
current and future needs.
4.1. Develop and implement Risk Management Policy that considers quality and quantity of all
energy supply and transmission contracts and facilities.
4.2. Maintain and implement a long-term energy and load forecast consistent with Risk
Management Policy.
4.3. Procure and contract for low cost electric power supplies to reliably meet current and future
loads, consistent with the Renewable Portfolio Standards and Risk Management Policy.
Title 1 Page 2
Attachment 1
4.4. Maintain and implement an Electric System Master Plan, including the required facilities to
meet the current and future demand and reliable supply.
4.5. Provide effective and efficient maintenance and replacement programs.
4.6. Provide an effective, efficient, and safe operations program.
5. Manage the District in an environmentally sound manner.
5.1. Seek power supply from a resource mix that satisfies its Renewable Portfolio Standard.
5.2. Develop and implement a program of water and electric power use efficiency and
conservation.
5.3. Support a program of distributed generation within the District's service area.
5.4. Conduct District business in an environmentally lawful manner.
5.5. Minimize negative impact of District operations on the environment.
5.6. Provide key leadership in the stewardship of the District's aquifer, watershed, and natural
infrastructure.
6. Manage the District in an effective, efficient and fiscally responsible manner.
6.1. Utilize modern, cost effective work methods and equipment.
6.2. Employ a qualified and productive workforce.
6.3. Provide safe work conditions and procedures that encourage employee growth, productivity
and retention.
6.4. Control the growth of the District's discretional-operational spending to a rate less than the
rate of inflation.
6.5. Review and update the Financial Goals policy to achieve a stable financial condition to
include planning, revenue, debt and reserve goals.
6.6. Develop appropriate financial procedures to assure responsible financial management.
(MO 0677,7/19/06,MO0718,3/7/07,Res.2008-02 3-5-08)
Title 1 Page 3