HomeMy WebLinkAbout8 Year End Financial Results Request for Transfers and Budget Carry-overs Agenda Item
:'TRUCKEE DONNER
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My District
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Public Utl 1 ,
ACTION
To: Board of Directors
From: Robert Mescher
Date: February 15, 2012
Subject: Consideration of the FY11 Year-End Financial Results and Request
for Transfers and Budget Carry-overs
1. WHY THIS MATTER IS BEFORE THE BOARD
Title 3, Section 3.02.010.2 of the District Code requires the budget performance to be
reviewed at a Board workshop semiannually after the close of June and December accounting
periods for each fiscal year.
2. HISTORY
The FY10 & FY11 budget was adopted November 18, 2009 and additional transfers and
budget carry-overs were authorized February 17, 2010. The FY10 mid-year results were
reviewed July 21, 2010 and no changes were made to the FY10 budget.
On October 5, 2010, staff advised the Board that the District would receive a $300,000 refund
from DAMPS. The Board moved to carry-over the proceeds of that refund into FY11 to avoid
implementing the planned Electric rate increase in FY11.
The FY10 year-end results were reviewed at the February 17, 2011 Board Meeting and
additional transfers and carryovers were authorized. The FY11 mid-year results were
reviewed on August 3, 2011 and no changes were made to the FY11 budget.
3. NEW INFORMATION
Preliminary FY11 results indicate that both the Electric and Water Departments exceeded the
budget expectation and ended the year with surpluses of just under 1% and 2% of budgeted
revenue respectively. Staff proposes to carry-over these amounts into FY12 for miscellaneous
projects.
The net rate-funded surplus for the Electric Department was $172,000 as compared to
budget. Operating revenue was 4% lower than budget primarily due to the 3% budgeted rate
increase that was not implemented. The lower revenue was also due to reduced power
needed to pump less water by the Water Department. Operating expenses were $992,000
(5%) less than budgeted, mainly due to less purchased power. The overall net operating
income of $5,133,000 was $144,000 (3%) more than budgeted. Other income and
expenditures were $37,000 less than budgeted and rate-funded capital expenditures were on
target, resulting in an overall unappropriated surplus of $173,000.
The net rate-funded surplus for the Water Department was $182,000 as compared to a
balanced budget. Operating revenue was 2% lower than budget due to the conservation effect
of consumer programs and meters, and also the reduction of the Glenshire surcharge last
summer. Operating expenses were $526,000 (7%) less than the FY11 budget due to reduced
staffing, water pump efficiency upgrades, and less pumped water as a result of repaired
system leaks. The net operating income for the Water Department was $253,000 (6%) more
than budgeted. Other income and expenditures were $124,000 less than the FY11 budget.
Rate-funded capital expenditures were $62,000 more than budgeted, resulting in an overall
unappropriated surplus of $182,000.
Attachment 1 reports the actual results of FY11 as compared to the adopted budget.
Attachment 2 reports the status of the restricted facilities fees fund as of the end of FY11. The
District is in compliance with spending facilities fees within the mandated 5-year period.
Attachment 3 lists the routine year-end transfers and staff's recommended carryovers into
FY12.
4. FISCAL IMPACT
The FY11 surpluses can be used to fund miscellaneous projects in FY12.
5. RECOMMENDATION
Authorize the transfers and carry-overs as listed in Attachment 3.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager
ATTACHMENT 1
Truckee Donner Public Utility District
Budget vs Actual Revenue & Expenditures PRELIMINARY
Electric Department
Fiscal Year Ending December 31, 2011
Variance
FY11 FY11 Favorable
Type Budget Actual (Unfavorable)
OPERATING REVENUE
Residential $ 1291165000 $ 1291249000 $ 89000 0%
Commercial 955399000 8,9839000 (5569000) -6%
Interdept. Sales & Rent 198889000 1,569,000 (3199000) -17%
Other 5015000 5209000 199000 4%
Total O Operating Revenue 249044,000 2391969000 (8485000) -4%
p g
OPERATING EXPENSE
Board of Directors 889000 889000 - 0%
General Management 4749000 4709000 49000 1%
Administrative Services 1,580,000 195049000 769000 5%
Conservation 194049000 153839000 219000 1%
Operations 396539000 393239000 3309000 9%
Power Supply 5619000 5709000 (99000) -2%
Purchased Power 1191519000 1095819000 5709000 5%
Total Operating Expense 1899119000 1799199000 9929000 5%
NET OPERATING INCOME 591339000 t92779000 1449000 3%
OTHER INCOME(EXPENDITURE)
Interest Income 589000 209000 (389000)
Fiber Asset Lease/Sale 2009000 - (200,000)
Transfers to Rate Reserve (4339000), (679000) 3669000
Transfers to Other Reserves (1809000) (1809000) -
Debt Service (394519000) (395429000) (915000)
Total Other Expenditure (3,8069000) (3,7699000) 379000
RATE-FUNDED CAPITAL EXPENDITURE 19327,000 193359000 (89000)
NET RATE-FUNDED CASH INFLOW(OUTFLOW) $ - $ 1739000 $ 1739000
Page 1 of 2
ATTACHMENT 1
Truckee Donner Public Utility District
Budget vs Actual Revenue & Expenditures PRELIMINARY
Water Department
Fiscal Year Ending December 31, 2011
Variance
FY11 FY11 Favorable
Type Budget Actual (Unfavorable)
OPERATING REVENUE
Residential $ 990409000 $ 897239000 $ (3179000) -4%
Commercial 191459000 1,228,000 839000 7%
Meter Reserve Surcharge 752,000 7479000 (59000) -1%
nterdept. Sales 19000 19000 - 0%
Other 5759000 5419000 (349000) -6%
Total Operating Revenue 1195139000 1192409000 (2739000). -2%
OPERATING EXPENSE
Board of Directors 859000 859000 - 0%
General Management 3959000 2909000 1059000 27%
Administrative Services 194399000 192709000 1699000 12%
Conservation 2609000 2809000 (209000) -8%
Operations 496149000 493429000 2729000 6%
Power Supply 2219000 221,000 - 0%
Interdept. Rent 3569000 3569000 - 0%
Total Operating Expense 793709000 698449000 5269000 7%
NET OPERATING INCOME 491439000 493969000 2539000 6%
OTHER INCOME (EXPENDITURE)
Interest Income 1189000 729000 (469000)
Transfer Surcharge to Meter Reserve (7469000) (7465000) -
Additional Transfer to Meter Reserve (2559000) (255,000) -
Transfers to Other Reserves (9699000) (8489000) 1219000
Debt Service (29005,000) (199565000) 4%000
Total Other Expenditure (3,8579000) (397339000) 1249000
RATE-FUNDED CAPITAL EXPENDITURE 2869000 3489000 (629000)
2010 PIPELINE REPLACEMENT PROJECT- PAID 2012 - 1339000 (1339000)
NET RATE-FUNDED CASH INFLOW(OUTFLOW) $ - $ 1829000 $ 1829000
Page 2 of 2
ATTACHMENT 2
FACILITIES FEES ANNUAL STATUS REPORT 01/13/11 Prepared 1/24/12
ELECTRIC FACILITIES FEES: 1.0.136.90
Summary 5 Years
2007 2008 2009 2010 2011 Ended 12/31/2011
Beginning Balance $1,657,525.63 $2,036,680.93 $1,798,480.33 $944,751.02 $510,148.77 $1,657,525.63
Facilities fees collected during year 392,858.00 130,082.00 72,884.00 86,893.00 165,536.75 848,253.75
Interest earnings during period 91,315.90 80,284.53 33,428.99 6,828.85 2,846.86 214,705.13
Project expenditures during period (105,018.60) (448,567.13) (960,042.30) (528,324.10) (82,128.00) (2,124,080.13)
(See Attached List of Projects)
Ending Balance $2,036,680.93 $1,798,480.33 $944,751.02 $510,148.77 $596,404.38 $596,404.38 Total amount available-See NOTE
i
848,253.75 Less:Amount collected over last 5 years
($251,849.37)Amount greater than 5 years old-NONE
WATER FACILITIES FEES: 2.0.136.25
Summary 5 Years
2007 2008 2009 2010 2011 Ended 12/31/2011
Beginning Balance $4,079,539.79 $4,541,77a.11 $2,652,408.66 $1,469,964.49 $879,220.49 $4,079,539.79
Facilities fees collected during period 959,870.43 294,353.40 155,519.36 166,025.70 163,973.16 19739,742.05
Facilities fee from 2006 COP 0.00 0.00 0.00 0.00 0.00 0.00
Reimbursement from electric-Wire to Water 1,127,490.70 87,500.00 0.00 0.00 0.00 1,214,990.70
Interest earnings during period 204,886.68 193,706.24 56,317.76 10,451.49 4,527.79 469,889.96
Project expenditures during period (19413,431.75) (2,109,792.22) (1,037,687.95) (411,414.28) (146,353.32) (5,118,679.52)
(See Attached List of Projects)
Loan Payments:
Debt Payments-facilities fees share (416,585.74) (355,128.87) (356,593.34) (355,806.91) (506,519.00) (1,990,633.86)
Ending Balance $4,541,770.11 $2,652,408.66 $1,469,964.49 $879,220.49 $394,849.12 $394,849.12 Total amount available-See NOTE
1,739,742.05 Less:Amount collected over last 5 years
($1,344,892.93)Amount greater than 5 years old-NONE
NOTE: If"Total amount available"is greater than"Amount collected over the last 5 years",then the District has facilities fees on hand that are greater than 5 years old.
If the amount of facilities fees on hand is greater than 5 years old,the District would have to either refund the money to customers or the Board would have to issue
a finding that the money greater than 5 years old was being held to pay for a specific project. The spreadsheet shows that the District does not have any electric or
water facilities fees on hand that are greater than 5 years old.
TRUCKEE DONNER PUBLIC UTILITY DISTRICT ATTACHMENT 3
ROUTINE FUND TRANSFER REQUESTS
FY2011
1. Reimburse the Water Genera I Fund from the Water Meter Reserve Fund for residential $ 729,322
meters installed in FY11.
2. Reimburse the Electric General Fund from the Electric Vehicle Reserve Fund for additional 11838
parts, paint, and labor to prepare new line truck.
3• Reimburse the Water Gener
al Fund from the Water Vehicle Reserve Fund for additional 47,331
parts, paint, and labor to refurbish service bodies and prepare 4 new service trucks.
4• Reimburse the Water General Fund from the Water Vehicle Reserve Fund for additional 29,250
parts, paint, and labor to convert an electric service truck to a water service truck.
5. Reimburse the Electric General Fund from the Electric Facilities Fees Fund for qualified 82,128
capital expenditures.
6. Reimburse the Water General Fund from the Water Facilities Fees Fund for qualified capital 146,353
expenditures.
7. Reimburse the Water General Fund from the Water Facilities Fees Fund for qualified debt 5069519
payments.
8. Carry over the FY11 Electric rate-funded surplus to fund miscellaneous Electric projects in 173,000
FY12.
9. Carry over the 2010 Water Pipeline Replacement project commitment into FY12. 133,000
10. Carry over the FY11 Water rate-funded surplus to fund miscellaneous Water projects in 182,000
FY12.