HomeMy WebLinkAbout10 FY12 and FY13 Budget Summary Agenda Item # 10
TRUCKEE DONNER
BUDGET
To: Board of Directors
From: Robert Mescher
Date: November 02, 2011
Subject__ FY12 and FY13 Budget Summary
I. WHY THIS MATTER IS BEFORE THE BOARD
This item continues the preparation process of the FY12 and FY13 budget.
2. HISTORY
District Code requires the District to prepare atwo-year budget.
BUDGET PROCESS SCHEDULE
September 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
November 2
• Hold a public hearing
• Present a draft of the FY12 and FY13 Budget
• Present the Financial Master Plan Summary
November 16
• 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 followingbudget g t highlights.
Kev Assumptions
• Customer utility rates will not be increased in FYI and FYI 3•
• Direct labor rates are estimated to be flat in FY12 and increa
3% in FY13; sed an estimated
• Staffing level changes include a reduction of two employees
Budget; from the FYI
• Most other operational expenses will remain flat or slightly
from 0% to 3% per year; g y increased, ranging
• No new debt will be incurred; and
• The budget will be balanced.
Budget Hi hli hts for Electric & Water Departments
Electric Department
• One less employee
• No other significant changes in year-to-year expenses
Focus will continue on p
• system maintenance, the SCADA Reliability
Improvement Project, and the reliabilityof the Do
Donner Lake Substation
Water Department
• One less employee
• Power supply costs are reduced as leaks were repaired
were installed and residential meters
• Focus will continue on completing the new residential
water meter installations
and the replacement of the Water S
CADA system
Reserve Funds
The District continues to fund the reserves for the
Electric Department, but those
reserve fund balances have not yet reached the District's goals. However, once the
Electric Department's debt is extinguished in 2012 th
reach its operating and ca ital r e District will be able to quickly
p eserve goals.
By the end of FYI 1, the District will reach and excee
d its reserve fund goals for the
Water Department. These reser
ve balances will protect the District from the revenue
uncertainties of the new residential volumetric billingan
internal funding for the last phase of d provide the District with
p the meter installation project.
The following are the total projected reserve fund b
Electric and Water. alances and the current goals for
Electric FYI FYI FYI Goal
$ 7,665,000 $ 810817000 $ 8 669 0
Water $10,531,000 $ 9,918 1 00 $11,000,000
000 $ 9,617,000 $ 61700,000
These reserve goals and balances will be i
discussed with the Board again n the
second quarter of next year.
Revenue Requirements
To fund the budgeted expenditures, no rate increases are ro
p posed.
FY12 FY13
Electric 0% 0%
LWater 0% 0%
3. NEW INFORMATION
Attachment 1 is a draft of the proposed FY12 and FY13 Budget. It includes.
• Executive Summary;
• Part I District's Mission Statement and Goals;
• Part II Electric Utility's Operating, Repair and Maintenance• Plan,
Part III Water Utility's Operating, Repair and Maintenance Plan;
• Part IV Electric and Water Capital Improvement Plans; an
Part V A d
• Appendices:
0 1 Interdepartmental Rent
0 11 Budgeted Positions by Department
o III Labor Overhead
0 IV Transportation Overhead
0 V Inventory Overhead
0 VI Administrative Overhead
0 VII Construction Overhead
o VIII Electric Debt Schedule
0 IX Water Debt Schedule
0 X Vehicle Replacement Schedule
4. FISCAL IMPACT
Staff is proposing a balanced budget for FY12 and FY
from other existingfunds will a 13. Total revenue and transfers
equal total expenses and transfers to reserves.
5. RECOMMENDATION
Receive this report and provide comments to staff.
low
Robert Mescher
Administrative Services M Michael D. Holley
Manager General Mana er
g