HomeMy WebLinkAbout#10 Draft Budget Agenda Item # 10
Public Utility District
PUBLIC HEARING
To: Board of Directors
From: Bob Mescher
Date: November 04, 2009
Subject: Draft Budget 2010-2011 Public Hearing
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board traditionally holds a Public Hearing before adopting the District's budget
and overhead rates.
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
• 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
• 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 FY11
Electric 0.00% 13.00%
Water 1.75% 1.75%
3. NEW INFORMATION
The hearing was advertised in the Sierra Sun on October 28th for the November 4th
public hearing.
4. FISCAL IMPACT
The is no fiscal impact associated with this Public Hearing.
5. RECOMMENDATION
Conduct the public hearing and receive public comment.
Mary Chapman Michael D. Holley
Administrative Services Manager General Manager