HomeMy WebLinkAbout12 Mid-Year Budget Review District's Financial Performance Agenda
Item
12
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TRUCKEE
DONNER
'hty District I
P olic Utl 1 .
...........................
WORK HOP
To: Board of Directors
From: Robert Mescher
Date: July 18, 2012
Subject: Mid-Year Budget Review of the District's Financial Performance
1. WHY THIS MATTER IS BEFORE THE BOARD
This is a mid-year review with the Board of the financial results as of June 2012.
2. HISTORY
The Board approved the FY12 and FY13 Budget on November 16, 2011.
District Code requires a semiannual review of the budgeted revenue and expenditures
as compared to the year-to-date actual revenue and expenditures.
3. NEW INFORMATION
Overall, the District is on track with the FY12 budget. Staff is recommending no
adjustments to the approved FY12 budget at this time.
Attachment 1 is the budget comparison of the Electric Utility. Revenue is 51% of
budget as of June 30th and is projected to be slightly less than budget by year-end.
The mid-year expenses are 42% of budget and are projected to be only 94% of
budget by the end of the year. Reduced purchased power cost is the primary reason
for the decrease. All other expenses are on target. The capital projects for the first half
of the year are 45% of budget. Expenditures in capital projects will be about 83% of
the budget for the year due to less development and facilities fees.
Attachment 2 is the budget comparison for the Water Utility. Revenue is 47% of
budget, but will be on track by year-end due to summer demand. The mid-year
expenses are 47% of budget and are projected to be only 96% of budget by the end
of the year. Pumping costs have been reduced due to repaired leaks, conservation
programs, and the conservation effect of volumetric billing. The administrative costs
for water metering and billing are less than budgeted. Expenditures in capital projects
will be about 77% of the budget for the year due to a delay in the SCADA Project and
deferring some vehicle purchases. The 2006 Pipeline Replacement Project was
completed in 2010, but the District retained $157,000 until 2012, which was paid with
the remaining 2006 COP proceeds. In 2012, the District will be testing an new method
of pipeline rehabilitation on 670 lateral feet of 8-inch pipe without trenching. If
successful, future rehabilitation costs of suitable pipeline could be significantly
reduced.
4. FISCAL IMPACT
There is no direct fiscal impact associated with this item.
5. RECOMMENDATION
Review this report and provide direction to staff.
Robert Mescher Michael D. Holley
Administrative Services Manager General Manager
Attachment 1
Truckee Donner Public Utility District
Electric Revenue
as of June 30, 2012
Projection
12 Mo YTD % of % of
Budget Actual Budget End of Yr Budget
Residential $ 1253085431 $ 655449346 53% $ 1159409000 97%
Commercial 899739815 4,4529352 50% 857005000 97%
Interdept. Sales & Rent 195519739 6849074 44% 1,490,000 96%
Standby 259480 - 0% 259400 100%
Other 3499031 1439744 41% 3299600 94%
Total $ 2392089496 $ 1198245517 51% $ 2294859000 97%
Electric Operating Expenses
as of June 30, 2012
Projection
12 Mo YTD % of % of
Cost Center Budget Actual Budget End of Yr Budget
Board of Directors $ 1039539 $ 465450 45% $ 1039500 100%
General Management 5399142 2799172 52% 5399000 100%
Administrative Svcs. 154309323 7379083 52% 19410,000 99%
Public Info. & Consrv. 19412,007 550,687 39% 194129000 100%
Operations 39185,748 19405,062 44% 391859500 100%
Power Supply(GIS) 6339402 2565358 40% 6089000 96%
Building Maintenance 5115365 1939215 38% 5119000 100%
Purchase Power 1196679301 498039223 41% 1095009000 90%
Total $ 1%482,827 $ 89271,250 42% $ 1892699000 94%
Electric Capital Projects
as of June 30, 2012
Projection
12 MO YTD % of % of
Source of Funds Budget Actual Budget End of Yr Budget
Rates 1,7519639 987,797 56% 1 751 000 100%
Facilities Fees 450,000 239524 5% 75,000 17%
vehicle Reserve 349109 - 0% 349000 100%
Total $ 252359748 $ 190119321 45% $ 198609000 83%
Attachment 2
Truckee Donner Public Utility District
Water Revenue
as of June 30, 2012
Projection
12 Mo YTD %of %of
Budget Actual Budget End of Yr Budget
Residential $ 855499479 $ 491179034 48% $ 893699000 98%
Commercial 191959665 5409819 45% 192509000 105%
Meter Reserve Surcharge 7529100 3739258 50% 7529000 100%
Standby & Fire Protection 1619040 - 0% 1619000 100%
Other 1979848 1039994 53% 2109000 106%
Total $ 10,856 9132 $ 5,135,105 47% $ 109 742,000 99%
Water Operating Expenses
as of June 30, 2012
Projection
12 Mo YTD %of %of
Cost Center Budget Actual Budget End of Yr Budget
Board of Directors $ 1039539 $ 459833 44% $ 1039500 100%
General Management 4369519 2199849 50% 4369500 100%
Administrative Svcs. 192849121 584,848 46% 192109000 94%
Public Info. & Consrv. 3379432 1129572 33% 3379000 100%
Operations 499649099 293549423 47% 497665000 96%
Power Supply (GIS) 3079148 1409513 46% 2959000 96%
Total $ 79432,858 $ 3,4589037 47%-[$ 791489000 96%
Water Capital Projects
as of June 30, 2012
Projection
12 Mo YTD %of %of
Source of Funds Budget Actual Budget End of Yr Budget
Rates 193869250 2359785 17% 8459000 61%
Pipeline Replacement - 156,719 0% 1579000 0%
Vehicle Reserve 2399750 156,236 65% 1579000 65%
Future Water Meters 5589043 1979558 35% 5609000 100%
Total $ 291849043 $ 7469298 34% $ 1971%000 79%