HomeMy WebLinkAbout10 Budget Presentation Agenda Item # 10
TRUCKEE DONNER
PU
BUDGET
To: Board of Directors
From: Robert Mescher
Date: October 19, 2011
Subject: Budget Presentations:
a)Operating/Capital Budget: Electric Operations
b) Operating/Capital Budget: Water Operations
c) Reserve Funds & Revenues
1. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the preparation process of the FY12 and FYI Budget.
2. HISTORY
District Code requires the District to prepare a two-year budget.
BUDGET PROCESS SCHEDULE
September 7 2011
• Discussed the budget objectives, goals, and assumptions
October 5 2011
• Discussed the:
• Budget overview;
• Purchase power plan; and
• Supporting services budget.
October 19 (Tonight)
• Discuss the Electric and Water Utility operational and capital budgets
November 2
• Present the Financial Master Plan Summary
• Present a draft of the FY12 and FY13 Budget
• Hold a public hearing
November 16
• Adopt the FY12 and FY13 Budget
t the FY g and Overhead Allocation Rates
• Adopt 12 and FY13 Purchase Power Plan
• Approve the related FY12 and FY13 budgeted
g ted transfers from the reserve funds
At the September 7, 2011 and October
following budget assumptions: S, 2011 Board Meetings, Staff resented
g ptions: p the
• Customer utility rates will not be increased0 FY12 and FY13;
Overall labor rates
are estimated to be flat in FY12
3% in FY13; and increased an estimated
• Staffing level changes include a reduc '
Budget; tion of two employees from the FY11
• Most other operational expenses will re
from 0% to 3% per year;
main flat or slightly increased, ranging
No y g g
• new debt will be incurred; and
• The budget will be balanced.
3. NEW INFORMATION
Bud et Highlights for Electric & Water Departments
Electric Department
• One less employee
• No other significant changes in
year-to-year expenses
• Focus will continue on system maintenance, the SCADA
Improvement Project, and the reliabilit Reliability
y of the Donner Lake Substation
Water Department
• One less employee
• Power supply costs are reduced as lea
were installed ks were repaired and residential meter
s
• Focus will continue on completingthe
and the replacement oft new residential water meter installations
he Water SCADA system
Reserve Funds
The District continues to fund the reserves for the Electric Department, but th
reserve fund balances have not yet reached ose
Electric Department's debt is the District's goals. However, once
extinguished in 2013, the operatingreserve the
will be significantly reduced, and the District erve requirements
and capital reserve oafs. will be able to quickly reach its operating
9 p ating
By the end of FYI 1, the District will re
Water Department. Th ach and exceed its reserve fund oa ese reserve balances will protect theg Is for the
uncertainties of the new residential Volumetric District from the revenue
internal funding for the last billing and provide the District '
phase of the project.
wi meter installationth
These reserve goals and balances w'(( be discussed with
second quarter of next � the Board a 'year. gain an the
Revenue Requirements
To fund the budgeted expenditures no increases are proposed:
FYI FYI
Electric 0.00% 0.00%
Water 0.00% 0.00%
4. FISCAL IMPACT
This budget workshop is part of the overall erall budget process that will affect th
pending for the next two fiscal years. a District's
5. RECOMMENDATION
Receive this report and provide comments to staff.
Robert Mesch ��
er
Administrative Services Manager Michael D. Holley
General Manager