HomeMy WebLinkAbout#13 Adopt Budget Overhead Rates Agenda Item # 13
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Public Utility District
ACTION
To: Board of Directors
From: Bob Mescher
Date: November 18, 2009
Subject: Consideration of Approving Resolutions to Adopt the 2010 and 2011
Budget and to Adopt the 2010 & 2011 Overhead Allocation Rates
1. WHY THIS MATTER IS BEFORE THE BOARD
This item completes the 2010 and 2011 Budget preparation process.
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.
At the September 16, 2009 Board Meeting, the District's Mission Statement,
Objectives and Goals were reviewed.
At the October 7, 2009 Board Meeting, budget assumptions and the proposed
operating and capital budgets of the supporting departments were presented.
On October 16, 2009, the Board received a draft of the 2010 and 2011 Budget.
At the October 21, 2009 meeting, the Purchased Power Plan for FY10 and FY11 was
adopted, the operating and capital budgets for Electric and Water Departments were
presented, revenue requirements and projected reserve balances were reviewed.
At the November 4, 2009 meeting, the budget was summarized, overhead allocation
rates were explained, the financial master plan through 2020 was reviewed, and a
public hearing was conducted.
3. NEW INFORMATION
No significant changes have been made to the budget as drafted on October 16, 2009
and as presented in prior workshops.
4. FISCAL IMPACT
Staff is proposing a balanced budget for 2010 and 2011.
Although this action item does not include adoption of electric and water rate
increases, the proposed budget reflects the following revenue increases:
2010 2011
Electric 0.00% 3.00%
Water 1.75% 1.75%
The overhead allocation rates used in the proposed budget are as follows:
Overhead Rate Metric 2010 2011
Labor —Payroll Dollars 85.91% 89.82%
Transportation Payroll Hours $ 10.97 $ 11.25
1 nventory Inventory Issues 24.73% 25.81%
Administration Payroll Dollars 2.79% 2.81%
Construction JlPayroll Dollars 1 24.93% F25.71
5. RECOMMENDATION
Approve the resolution to adopt the 2010 and 2011 budget (Attachment 1).
Approve the resolution to adopt the overhead allocation rates for 2010 and 2011
(Attachment 2).
'_A'rna��aw f-yn
Mary Chap n 0 Michael D. Holley
Administrative Services Manager General Manager
Attachment 1
Publ�c Utility District
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Resolution No. 2009 - XX
ADOPTING THE BUDGET FOR 2010 and 2011
WHEREAS The Board of Directors adopted a Mission Statement and statement of goals and
objectives for the District; and
WHEREAS District staff used that Mission Statement and statement of goals and objectives to
prepare a draft budget for 2010 and 2011; and
WHEREAS the Board of Directors and staff of the District participated in departmental workshops
in the months of September, October, and November of 2009 to review the draft Budget; and
WHEREAS on October 16, 2009, the Board of Directors received a draft budget for 2010 and
2011; and
WHEREAS the Board of Directors accepts the organization changes as directed in the budget.
NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner Public Utility
District to adopt the draft budget for 2010 and 2011.
BE IT FURTHER RESOLVED by the Board of Directors authorizes the General Manager and
staff the authority to implement the biannual 2010 and 2011 budget.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the 18t' of November 2009 by the following roll call vote:
AYES:
ABSTAIN:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President of the Board
ATTEST:
Michael D. Holley, Clerk of the Board
Attachment 2
Public Utility District
Resolution No. 2009 - XX
ADOPTING THE OVERHEAD ALLOCATION RATES FOR
THE 2010 AND 2011 BUDGET
WHEREAS the Board of Directors and staff of the District participated in departmental
workshops in the months of September, October, and November of 2009 to review the draft
Budget for 2010 and 2011; and
WHEREAS the draft budget for District operations and capital spending for the years 2010
and 2011 recommends certain accounting overhead allocation rates; and
NOW THEREFORE BE IT RESOLVED by the Board of Directors of Truckee Donner Public
Utility District adopts the following budget overhead allocation rates:
Overhead Rate FY10 FY11
Labor 85.91% 89.82%
Transportation $ 10.97 $ 11.25
Inventory 24.73% 25.81%
Administration 2.79% 2.81%
Construction 24.93% 25.71%
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within the
District on the 18th of November 2009 by the following roll call vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President of the Board
ATTEST:
Michael D. Holley, Clerk of the Board