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Home My WebLink About10 District Fianancial Performance Agenda Item # 10 Public Utility District ACTION To: Board of Directors From: Bob Mescher Date: July 21, 2010 Subject: Mid-Year Budget Review of the District's Financial Performance and Consideration of Related Transfers of Funds 1. WHY THIS MATTER IS BEFORE THE BOARD This is a mid-year review with the Board of the financial results as of June 2010 and consideration of related transfers of funds. 2. HISTORY District Code, Title 3, Section 3.16.030.7(D) requires that the Board be presented with a mid-year budget report showing the status of budgeted expenditures compared to actual expenditures at a Board workshop after the June financial accounting is completed. Additionally, reserving District funds for a specific use is solely within the purview of the Board. 3. NEW INFORMATION Overall, the actual District operating revenue is on track with the FY10 budget. The actual District operating expenditures are also on target with the FY10 budget. Staff is recommending no adjustments to the approved FY10 budget at this time. The first half of actual revenue is equal to half of the FY10 budgeted revenue (Attachment 1). Electric revenue is 53% of budget and is expected to continue to be in-line with the FY10 budget by the end of the year. Water revenue is 49% of budget and is also expected to continue in-line with FY10 budget through the end of the year. Electric and Water operating expenses are 46% and 45% of budget respectively, and are primarily lower due to lower purchase power costs, lower general operating costs, and conservation programs that will be implemented in the second half of the year (Attachment 2). It is anticipated, however, that expenses will match the FY10 budget by the end of the year. Year to date capital expenditures are 32% of the FY10 budget (Attachment 3). Many of the large projects just began last month and are expected to be in-line with the FY10 budget by the end of the year. Projects funded by facilities fees will be scaled back or delayed until future facilities fees are collected. Actual vehicle replacement has been reduced for FY10. The approved FY10 budget provided for a transfer of$159,650 and $144,200 from the Electric and Water general funds respectively to the respective vehicle reserve funds for future purchases of vehicles. 4. FISCAL IMPACT An additional $159,650 and $144,200 will be reserved for Electric and Water vehicle purchases respectively, as provided in the approved FY10 budget. 5. RECOMMENDATION a) Authorize the transfer of $159,650 from the Electric General Fund to the Electric Vehicle Reserve Fund. b) Authorize the transfer of $144,200 from the Water General Fund to the Water Vehicle Reserve Fund. /-,-p 7.v. Mary Chapman Michael D. Holley Administrative Services Manager General Manager Attachment 1 Truckee Donner Public Utility District Electric Revenue as of June 30, 2010 Projection YTD 12 Mo % of % of Actual* Budget Budget End of Yr Budget Residential $ 696839318 $ 119573,717 58% $ 119573,717 100% Commercial 495579558 99168,516 50% 99168,516 100% Interdept. Sales & Rent 734,649 11817,260 40% 19817,260 100% Standby - 219000 0% 219000 100% Other 146,386 302,870 48% 3029870 100% Total $ 129121,911 $ 229883,363 53% $ 22,883,363 100% *YTD Actual includes estimated revenue earned in June, but not yet billed. Truckee Donner Public Utility District Water Revenue as of June 30, 2010 Projection YTD 12 Mo % of % of Revenue Actual* Budget Budget End of Yr Budget Residential $ 49485,349 $ 897539284 51% $ 8,7539284 100% Commercial 451,239 1,1259669 40% 19125,669 100% Meter Reserve Surcharge 3769080 7529100 50% 752,100 100% Standby & Fire Protection 79108 304,361 2% 3049361 100% Other 909177 140,928 640/co 140,928 100% Total $ 51409,953 $ 11,076,342 49% $ 119076,342 100% *YTD Actual includes estimated revenue earned in June, but not yet billed. Attachment 2 Truckee Donner Public Utility District Electric Operating Expenses as of June 30, 2010 Projection YTD 12 Mo % of % of Cost Center Actual Budget Budget End of Yr Budget Board of Directors $ 31,735 $ 94,700 34% $ 94,700 100% General Management 2309256 458,164 50% 45%164 100% Administrative Svcs. 7355587 1,519,741 48% 1,5195741 100% Public Info. &Consrv. 617,602 1,360,589 45% 153605589 100% Operations 155199230 31520,009 43% 3,520,009 100% Power Supply (GIS) 269,434 534,849 50% 5349849 100% Purchase Power* 55035,063 10,7465353 47% 1097469353 100% Total $ 8,438,907 $ 18,234,405 46% $ 18,234,405 100% *Purchased Power is net expense (gross expense, less NCPA WAPA credit) Truckee Donner Public Utility District Water Operating Expenses as of June 30, 2010 Projection YTD 12 Mo % of % of Cost Center Actual Budget Budget End of Yr Budget Board of Directors $ 319294 $ 915200 34% $ 91,200 100% General Management 1209802 3819149 32% 3819149 100% Administrative Svcs. 635,726 113879837 46% 19387,837 100% Public Info. &Consrv. 92,057 194,516 47% 194,516 100% Operations 2,1355153 4,736,526 45% 49736,526 100% Power Supply (GIS) 105,596 211,438 50% 211,438 100% Total $ 3,120,628 $ 7,002,666 45% $ 79002,666 100% Attachment 3 Truckee Donner Public Utility District Electric&Water Capital Projects as of June 30, 2010 Projection YTD 12 Mo % of % of Source of Funds Actual Budget Budget End of Yr Budget Rates 626,905 115860961 40% 19540,000 103% Facilities Fees 457,829 1,813,819 25% 19300,000 72% 2006 COP 6679930 19065,514 63% 11070,000 100% Vehicle Reserve 1929946 350,000 55% 193,000 55% Future Water Meters 2169583 29028,307 110/61 2,500,000 123% Total* $ 2,1629193 $ 6,8449601 32% $ 69603,000 96% *Excludes projects funded by developers and special projects funded from capital reserves as approved by the Board in FY10.