HomeMy WebLinkAbout16 Budget Presentations Operating/Capital Agenda Item # 16
TRUCKEE DONNER
Public Utility Dlstnct
BUDGET
To: Board of Directors
From: Bob Mescher
Date: October 05, 2011
Subject: FY12 and FYI Operating/Capital Budget Presentations:
a) Board of Directors and General Management
b) Administrative Services
c) Conservation
d) Power Supply/GIS
1. 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 a two-year budget.
BUDGET PROCESS SCHEDULE
September 7, 2011
• Discussed the budget objectives, goals, and assumptions
October 5. 2011 (Tonight)
• Discuss the:
• Budget overview;
• Purchase power plan; and
• Supporting services budget.
October 19
• 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 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 September 7, 2011 Board Meeting, Staff presented the following budget
assumptions:
• Customer utility rates will not be increased in FY12 and FY13;
• Overall labor rates are estimated to be flat in FY12 and increased an estimated
3% in FY13;
• Staffing level changes include a reduction of two employees from the FY11
Budget;
• Most other operational expenses will remain flat or slightly increased, ranging
from 0% to 3% per year; and
• No new debt will be incurred.
3. NEW INFORMATION
Staff is proposing a balanced budget. With the exception of inflationary increases in
some categories, there are no significant changes to the FY13 budget from the FY12
budget. The budget highlights for Board of Directors, General Management,
Administrative Services, Conservation, and Power Supply/GIS, comparing the FY12
budget to the FY11 budget:
Board of Directors
• $15,000 additional election expense is included in FY12 only
• Miscellaneous expenses increase $20,000 for Board Member training and
medical benefits
• No new capital expenditures
General Management
• Overall expenses increase $110,000 primarily due to relocating the Human
Resource Manager, associated programs and personnel expenses from
Administrative Services to General Management
• No significant changes in operational expenses
• No new capital expenditures
Administrative Services
• Overall expenses decrease $300,000 primarily due to relocating the Human
Resource Manager from Administrative Services to General Management, and
not filling the Finance and Accounting Manager position
• General liability insurance costs decrease $30,000
0 Bad debt expense increases $60,000
Conservation
• Water conservation programs increase by $80,000
• Water conservation capital projects decrease by$40,000
• No significant changes in Electric conservation expenses
Power Supply/GI
• Overall expenses increase $160,000 primarily due to an additional employee
and operating expenses, both related to SCADA
• Capital expenditures increase $200,000 to improve the District's SCADA
equipment
4. FISCAL IMPACT
This budget workshop is part of the overall budget process that will affect the District's
spending for the next two fiscal years.
5. RECOMMENDATION
Receive this report and provide comments to staff.
Bob Mescher Michael D. Holley
Acting Administrative Services Manager General Manager