HomeMy WebLinkAbout15 FY12&13 Budget Agenda Item # 15
TRUCKEE DONNER
Public Utility District
BUDGET
To: Board of Directors
From: Robert Mescher
Date: September 07, 2011
Subject: Discussion of FY12 & FY13 Budget: Objectives, Goals,
Assumptions, Labor, and Existing Debt
1. WHY THIS MATTER IS BEFORE THE BOARD
This item begins the process for preparation of the FY12 & FY13 budget.
2. HISTORY
The approved FY11 Budget for the Electric Department provided for $23.9 million
revenue and $0.8 million in transfers from other funds, and using those funds as
follows: $18.9 million operating expenses, $3.5 million debt service, $0.6 million
transfers to reserves, and $1.7 million capital projects.
The approved FY11 Budget for the Water Department provided for $11.2 million
revenue and $4.0 million in transfers from other funds, and using those funds as
follows: $7.4 million operating expenses, $3.3 million debt service, $1.9 million
transfers to reserves, and $2.6 million capital projects.
The approved FY11 Budget allotted 66.5 employees, 36.5 employees for the Electric
Department and 30 employees for the Water Department. Some of those budgeted
positions remain vacant. There are currently 63 employees as of August 2011.
3. NEW INFORMATION
SCHEDULE
The schedule for the budget process is as follows:
September 7 (Tonight)
Discuss the objective goals and assumptions
October 5
• Discuss the purchase power plan
• Discuss the operating and capital budgets for supporting services
o Board
o General Management
o Administrative Services
o Conservation
o Power Supply/GIS
October 19
• Discuss the operating and capital budget for the Electric and Water Utilities
November
• Present the Financial Master Plan
• Present a draft of the FY12 & FY13 Budget
• Hold a public hearing
November 16
• Adopt the FY12 & FY13 Budget
OBJECTIVES AND GOALS
Attachment 1 is the District Code, Title 1, Mission Statement, Objectives and Goals.
Title 1 was last reviewed and updated last year. Staff is ensuring that the FY12 &
FY13 Budget will be consistent with Title 1 of the District Code.
ASSUMPTIONS, LABOR AND EXISTING DEBT
The FY12 & FY13 Budget will be similar to the FY10 & FY11 Budget. As compared to
the prior budget, the assumptions and proposed changes are:
• Customer utility rates will not be increased in FY12 & FY13
• Labor rates are estimated to be flat in FY12 and increased an estimated 3% in
FY13
• Staffing level changes include decreasing from the FY11 budgeted employees
of 66.5 to 65 employees in FY12 & FY13.
• Most other operational expenses will remain flat or slightly increased, ranging
from 0% to 3% per year
• No new debt will be incurred
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.
Robert Mescher Michael D. Holley
Acting Administrative Services Manager General Manager
Attachment 1
TITLE 1 (6/2/10)
GENERAL PROVISIONS
CHAPTERS:
1.01 Introduction
1.05 Mission Statement
CHAPTER 1.01
INTRODUCTION
These policies and regulations are intended to provide a comprehensive description of the
manner in which the District operates and serves its customers and shall be followed and
adhered to by all District staff and persons and entities doing business with the District.
As in any set of policies and regulations, not all circumstances can be envisioned. The
Board of Directors of the District shall apply and interpret these policies and regulations fairly
and consistently, taking into consideration any unique or unusual circumstances on a case
by case basis.
CHAPTER 1.05
MISSION STATEMENT
Sections:
1.05.010 Mission Statement
1.05.020 Objectives
1.05.030 Goals
1.05.010 Mission Statement: The Mission of Truckee Donner Public Utility District is to
provide reliable, high quality water and electrical power services while meeting customer
demand, and to manage District resources in a safe, open, responsible, environmentally
sound manner at the lowest practical cost.
1.05.020 Objectives:
1. Responsibly serve the public.
2. Provide a healthy and safe work environment for all District employees.
3. Provide reliable and high quality water supply and distribution system to meet current
and future needs.
4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
Title 1 Pagel
5. Manage the District in an environmentally sound manner.
6. Manage the District in an effective, efficient and fiscally responsible manner.
1.05.030 Goals:
1. Responsibly serve the public.
1.1.Conduct the District's business in a legal, ethical, open, and transparent manner.
1.2. Implement a proactive public outreach program.
1.3.Promote communication and cooperation with other public and private agencies.
1.4.Develop and implement high standards of customer service.
1.5.Develop and implement high operational standards, procedures and Codes of
Conduct.
2. Provide a healthy and safe work environment for all District employees.
2.1.Reduce the OSHA reportable injury frequency and severity rates relative to previous
reporting year.
2.2.Comply with all State and Federal regulations regarding worker safety.
2.3.Maintain the District's wellness program.
2.4.Reduce employee injuries by maintaining an active and effective safety program.
3. Provide reliable and high quality water supply and distribution system to meet current and
future needs.
3.1.Maintain and implement a current Urban Water Management Plan which includes
current and future projections of water quality, demand, and supply.
3.2.Maintain and implement a current Water Master Plan, including the required facilities
to meet current and future demand and supply.
3.3.Secure the necessary water rights and other legally required documentation.
3.4.Conduct effective and efficient operations, maintenance, and replacement programs.
4. Provide reliable and high quality electric supply and distribution system to meet current
and future needs.
4.1.Develop and implement Risk Management Policy that considers quality and quantity
of all energy supply and transmission contracts and facilities.
Title 1 Page 2
4.2.Maintain and implement a long-term energy and load forecast consistent with Risk
Management Policy.
4.3.Procure and contract for low cost electric power supplies to reliably meet current and
future loads, consistent with the Renewable Portfolio Standards and Risk
Management Policy.
4.4.Maintain and implement an Electric System Master Plan, including the required
facilities to meet the current and future demand and reliable supply.
4.5.Provide effective and efficient maintenance and replacement programs.
4.6.Provide an effective, efficient, and safe operations program.
5. Manage the District in an environmentally sound manner.
5.1.Seek power supply from a resource mix that satisfies its Renewable Portfolio
Standard.
5.2.Develop and implement a program of water and electric power use efficiency and
conservation.
5.3.Support a program of distributed generation within the District's service area.
5.4.Conduct District business in an environmentally lawful manner.
5.5.Minimize negative impact of District operations on the environment.
5.6.Provide key leadership in the stewardship of the District's aquifer, watershed, and
natural infrastructure.
6. Manage the District in an effective, efficient and fiscally responsible manner.
6.1.Utilize modern, cost effective work methods and equipment.
6.2.Employ a qualified and productive workforce.
6.3.Provide safe work conditions and procedures that encourage employee growth,
productivity and retention.
6.4.Control the growth of the District's discretional-operational spending to a rate less
than the rate of inflation.
6.5.Review and update the Financial Goals policy to achieve a stable financial condition
to include planning, revenue, debt and reserve goals.
Title 1 Page 3
6.6.Develop appropriate financial procedures to assure responsible financial
management.
MO 0677, 7/19/06,MO0718,3/7/07, Res. 2008-02 3-5-08, Res 2009-29, Res. 2010-09)
Title 1 Page 4