HomeMy WebLinkAbout#7 Budget Summary Agenda Item # 7
DONNER
DistrictPublic Utility
BUDGET
To: Board of Directors
From: Bob Mescher
Date: November 04, 2009
Subject: Draft 2010-2011 Budget Summary
1. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the preparation process of the FY10 and FY11 budget.
2. HISTORY
In July 2008, the Board adopted a revision to Title 3 requiring the General Manager to
submit to the Board a two-year budget beginning 2010.
Since July 2009, staff has been preparing the FY10 and FY11 budget.
The preliminary FY10 and FY11 purchase power plan was presented in the
September 2, 2009 Board Meeting. It was estimated that purchase power costs would
decrease over 2% in FY10 as compared to the FY09 budget, but would increase over
5% in FY11 as compared to FY10.
At the September 16, 2009 Board Meeting, the District's Mission Statement,
Objectives and Goals were reviewed.
At the October 7, 2009 Board Meeting, the proposed operating and capital budgets of
the supporting departments were presented. Staff also presented the following budget
assumptions:
• 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
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67 total FTEs in FY10 & FY11
• 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
• The costs of employee benefits, particularly medical insurance and retirement
benefits are projected to increase in FY10 and FY11
• The District will focus on more water conservation programs in FY11. Water
conservation programs will be increased about 10% in FY11 from FY10, and an
additional employee in the Conservation Department is proposed for the last
half of FY11, to add capacity for new water programs
The Board received a draft of the budget on October 16, 2009.
At the October 21, 2009 meeting:
• The Board adopted the revised Purchase Power Plan for FY10 and FY11
• Purchase power costs decrease 3% in FY10 as compared to the FY09
budget
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Purchased power costs increase 4% in FY11 as compared to FY10
• operating and capital budgets for Electric and Water Departments were
presented
• Revenue requirements and projected reserve balances were reviewed
• The following rate increases were proposed:
FY10 1 FY11
Electric 0.00% 13.00%
Water 1.75% 1.75%
3. NEW INFORMATION
This workshop is a review of all prior budget workshops.
4. FISCAL IMPACT
Staff is proposing a balanced budget for FY10 and FY11. Total revenue and transfers
from other existing funds will equal total expenses and transfers to reserves.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Mary Chapman Michael D. Holley
Administrative Services Manager General Manager