HomeMy WebLinkAbout7 Budget Public Hearing Agenda Item # 7
TRUCKEE DONNER
PUBLIC HEARING
To: Board of Directors
From: Robert Mescher
Date: November 02, 2011
Subject: Draft FY12 and FY13 Budget Public Hearing
I. WHY THIS MATTER IS BEFORE THE BOARD
The Board traditionally holds a Public Hearing before adopting the Districts budget
and overhead rates.
2. HISTORY
District Code requires the District to prepare atwo-year budget.
BUDGET PROCESS SCHEDULE
Sent- ember 7
• Discussed the budget objectives, goals, and assumptions
October 5
• Discussed the:
• Budget overview;
• Purchase power plan; and
• Supporting services budget.
October 19
• Discussed the Electric and Water Utility operational and capital budgets
Novi
• Hold a public hearing
• Present a draft of the FY12 and FY13 Budget
• Present the Financial Master Plan Summary
Nove
• Adopt the FY12 and FY13 Budget and Overhead Allocation Rates
• Adopt the FY12 and FY13 Purchase Power Plan
• Approve the related FY12 and FY13 budgeted transfers from the reserve funds
At the previous workshops, Staff presented the following budget highlights:
Key Assumptions
• Customer utility rates will not be increased in F
Direct labor rates are Y12 and FY13;
' e estimated to be flat in FY12 and 3% in FY13; incr eased an estimated
• Staffing level changes include a reduction
Budget; of two employees from the FY11
• Most other operational expenses will remain
from 0% to 3% per year;
flat or slightly increased, ranging
p y 9
• No new debt will be incurred; and
• The budget will be balanced.
Bud et Hi hli hts for Electric & Water Departments
Electric Department
• One less employee
• No other significant changes in year-to-year
• Focus will continue y expenses
on system maintenance, the SCADA Reliability
Improvement Project, and the reliabilityof the e Donner Lake Substation
Water Department
• One less employee
• Power supply costs are reduced as leaks w
were installed ere repaired and residential meters
• Focus will continue on completingthe
a new residential water meter installations
and the replacement of
the Water SCADA system
Reserve Funds
The District continues to fund the reserves for the Electric Department
reserve fund balances have , but those
not yet reached the District's goals. However
Electric Department's debt is extinguished ' , once the
reach its operatingand capital g �n 2012, the District will be able to quickly
pital reserve goals. a Y
By the end of FYI 1, the District will reach
W and exceed its reserve fund goals for the
Water Department. These res
erve balances will protect the District from the
uncertainties of the new residential volumetric revenue
internal funding for the last phase of the meter billing and provide the District with
p installation protect.
The following are the totalprojected
Electric and Water. reserve fund balances and the current goals for
FY11 FY12 FYI Electric 3 Goal
$ 7,665,000 $ 8,081,000
Water $ $ 8,669,000 $11,000,000
10,531,000
$ 9,918,000 $ 91617,000
$ 61700,000
These reserve goals and balances will
be discussed with th
second quarter of next e Board again in the year. g
Revenue Requirements
To fund the budgeted expenditures no ra
te increases are proposed:
FYI FYI
Electric 0% 0%
Water 0% 0%
3. NEW INFORMATION
The hearing was advertised in the Sierra
Sun on October 26th for the November
2nd
Public hearing.
4. FISCAL IMPACT
The is no material fiscal impact associate
d with this Public Hearing.
5. RECOMMENDATION
Conduct the public hearing and receive
public comment.
Robert Mescher - -- _
Administrative Services Manager Michael D. Holley
General Manager