HomeMy WebLinkAbout#12 JKAE AGENDA ITEM #12
Public Utility District m
MEETING DATE: August 7, 2024
TO: Board of Directors
FROM:
SUBJECT: New Truckee Library Project: Updates Presented by JKAE and
Friends of the Library
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Receive this presentation and provide feedback and direction to staff.
BACKGROUND:
The District has been working in partnership with Tahoe Donner Rec and Park District
(TDRPD), Truckee Sanitary District (TSD), Town of Truckee (ToT) and the Friends of
the Library to coordinate efforts in establishing the most beneficial location for the new
Truckee Regional Library within the Truckee Regional Park grounds. The District owns
multiple parcels within Truckee Regional Park adjacent to parcels owned by TSD and
TDRPD. Each of these parcels included parcel boundaries or lot lines that created
significant challenges in accommodating future project development and beneficial
use. The District, in partnership with TSD, TDRPD and Friends of the Library,
coordinated a project to adjust adjacent parcel boundaries, with a final product offering
far more manageable parcel boundaries without modifying the size or ownership of the
parcels involved.
ANALYSIS AND BODY:
The Truckee Regional Library JPA has procured a consulting contract with JKAE
Architects to develop project design and architecture. Through the initial phases of the
library design, JKAE and the new library project JPA have identified multiple options for
the library facility design as well as building and parking locations. In this workshop,
JKAE and Friends of the Library will provide a presentation on project updates, new
information and next steps.
GOALS AND OBJECTIVES:
District Code 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.
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4. Provide reliable and high quality electric supply and distribution system to meet
current and future needs.
5. Manage the District in an environmentally sound manner.
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1.05.030 Goals:
1. Manage for Financial Stability and Resiliency
2. Environmental Stewardship: Create a sustainable resilient environment for all our
communities.
3. Engage with our customers and communities in a welcoming and transparent way to
identify opportunities.
4. Take the best of private sector thinking to modernize the utility and add value to our
communities.
5. Developing an inclusive culture drives organizational integration and success.
FISCAL IMPACT:
There is no direct fiscal impact associated with this item.
ATTACHMENTS:
None
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AGENDA ITEM #13
Public Utility District m
MEETING DATE- August 7, 2024
TO- Board of Directors
FROM: Michael Salmon, Chief Financial Officer
SUBJECT: 2024 Mid-Year Financial Update
APPROVED BY:
Brian C. Wright, General Manager
RECOMMENDATION:
Accept and file the 2024 mid-year financial update.
BACKGROUND:
District Code requires a semi-annual review of the budgeted revenues and
expenditures as compared to the year-to-date actual revenues and expenditures.
The budget to actual reports included herein are consolidated reports of actual activity
for revenues, operating expenses, capital expenditures, debt service, and
transfers. The report is a non-GAAP source, uses style reports and excludes
depreciation, amortization and contributed capital activities.
ANALYSIS AND BODY:
General Comments:
In May 2023, the US Center for Disease Control (CDC) ended the federal COVID-19
Public Health Emergency declaration. Over a year since the pandemic was declared
over, the District's customer account arrearages remain slightly elevated as compared
to pre-pandemic historical averages. As of June 30, 2024, 1.9% of customers were 30
days past due, 0.4% 60 days past due, and 0.3% (or 51 accounts) were past due 90+
days. Below is trend information for customer account balance amounts for 90+ days
past due for electric and water utilities combined.
$259,938
$213,065
$111,025
$91,243
$43,612 $61,905
$12,240 $13,658 $36,887 $30,57( $42,835
6/30/2019 12/31/2019 6/30/2020 12/31/2020 6/30/2021 1Z/3112021 6/30/2022 12/31/2022 6/30/2023 12/31/2023 6/30/Z024
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The above balances are post-application of $195,000 in federal financial aid (ARPA)
and $162,000 provided in pandemic relief by the District to 562 customer
accounts. The District has provided over $191,000 in bill payment relief to 650
accounts ($293 per account average).
Turning to the economy, current inflation rates have recently softened from forty-year
highs in 2021 and 2022. December's US inflation figures over the last decade and
June 2024 are as follows:
Chart: United States Annua.1 laflador Rates '2014 to 2-324'1
I i
J
f
R
2014 2016 2018 2020 2022 2024*
2017 2021 2023
Year to date, the District has managed to operate generally within budget (except of
specific capital projects bids) and obtain most supplies and materials within reasonable
timelines. The District has experienced notably extended lead-times in procurement of
certain transformers, poles and meter materials. The District continues to proactively
address core supply and material inventories to mitigate potential future issues in
obtaining these core operational items.
Electric Utility (Attachment 1):
Billed accounts in June 2024 were 14,787 and Year to Date (YTD) the number of billing
accounts is up 0.8% from last year. YTD billed KWH of 93.1 M is down 6.3% on a per-
day billed basis, and KWH billed per customer per billing day is down 7.0% YTD
compared to last year. This decrease is primarily attributed to a milder winter (close to
average) and spring this year as compared to last year's near record winter, as all
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months' YTD are down compared to the prior year. KW Demand peak YTD June 2024
of 33,668 (Jan) compares down 2.7% to 34,604 peak in Jan'23. The KW peak demand
in Q2 of 28,150 (Jun) compares up 0.1% to Q2 of 2023 of 28,120 (Apr). May's KW
demand was flat year to year. June's KW demand of 28,150 is notably high, up 32% to
2023 and up 30% to 3-year average ('21-'23) for June, with heat, electrification, and
holiday timing all being potential factors driving this demand increase, which warrants
further analysis.
Operating Revenues YTD 6/30/2024 of$20.65M are 54% of the annual budget, which
equates to a favorable $1.53M. Compared to budget, residential sales are up 6% to
budget, and commercial sales are up 3% to budget. Interdepartment Sales (Water
Utility Energy Consumption) are 40% of the annual budget. However, with the
seasonality of water use, sales are forecast for this year to be 98% of the
budget. Miscellaneous revenues are generally on budget. The annual forecast
operating revenue of$38.65M is favorable to budget $0.42M or 1%.
Operating Expenses YTD 6/30/2024 of $7.65M are 46% of the annual budget, which
equates to a favorable variance of $0.65M. Electric operations is at 46% of the annual
budget and is forecast to be on budget for the year. All other departments are running
at or below budget for the year and annual forecast. The annual forecast for Operating
Expenses is $16.32M, under budget by $230,000 or 1% to budget.
Purchased power cost YTD 6/30/2024 of$6.94M is 47% of the annual budget and
equates to a favorable variance of $0.44M. This YTD cost savings of 3% to budget is
summarized as follows:
6% greater kWh volume purchased, 9% cost per MW savings, nets to 3% less
purchased power costs YTD. The cost savings per MW is delivered back to customers
via the purchased power adjustment calculated quarterly, see separate agenda item.
Capital Expenditures YTD 6/30/2024 of $1.99M are 15% of the annual budget, under-
running due primarily to timing of projects for the year and between years. The annual
forecast is $10.52M, and it is under budget $2.82M / 21% in expenditures for the
year. The 2024 projects are numerous, with the largest single dollar project being pole
replacements for $813,000. Electric's debt issuance proceeds of$6.5M have not been
expended and are currently forecast to be expended in FY25.
Electric and other cash flow items:
Investment income is 41% of budget YTD due to interest rate volatility. For ,the year,
investment income of $218k is conservatively forecast to be 92% of the budget or $18k
under.
Debt service for Electric of$216,000 YTD and the $429,000 annual forecast are on
budget.
Other transfers In/Out has a budget of $6.26M for Net In Flow and is forecast to be
$2.53M. The lower net amount is due to less capital expenditures, which drives less
use of capital reserve funds than budgeted.
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Electric Utility's Net Budget Activity YTD 6/30/2024 is a positive $3.37M. The annual
forecast for 2024 is a negative $0.37M and compares unfavorably by $.02M to the
Budget 2024 of negative $0.35M.
The Forecast for the year is a net unfavorable $0.02M to budget, and can be
summarized as follows:
• ($0.93M) capital expenditures net of capital reserves utilization, over budget
(timing between years)
• $0.42M revenues favorable to budget 1%
• $0.23M expenses unfavorable to budget 1%
• $0.24M purchased power favorable to budget 2%
• $0.02M investment income under budget
• $O.00M debt service on budget
• $0.02M total, net ($20,600)
Electric Utility's key reserve balances (Attachment 3):
The operating reserve balance as of 6/30/2024 was $10.13M and is $1.86M or 22%
over the policy goal of 50% of the annual operating budget, due primarily to being a
mid-year balance measurement and timing of capital expenditures occurring primarily in
2nd half of the year. For year-end 2024, the balance is forecast to be on budget at
$7.51 M. The rate reserve balance as of 6/30/2024 was $5.89M and is $1.49M or 20%
under the policy goal of 50% of the annual purchased power budget. This deficiency in
the reserve balance rate was addressed in the FY24/25 budget, with the 2023
utilization of reserve funds being replenished over three years to spread over time the
impact on customers. The capital reserve balance of 6/30/2024 was $10.81 M and has a
year-end forecast balance of $9.63M, which at year-end is $3.39M over budget and
financial master plan, driven by delays in certain planned capital projects. The
restricted debt issuance project fund balance as of 6/30/2024 was $6.88M and is
forecast to be $6.60M at year-end. However, depending on timing and approvals,
certain projects may utilize these funds in 2024.
Water Utility (Attachment 2):
Billed accounts in June 2024 were 13,685 and Year to Date (YTD) the number of billing
accounts is up 0.6% to last year. YTD billed gallons of 372M are up 14% compared to
the prior year. Billed gallons per customer per day YTD June of 145gpd are up 8%
from last year (residential up 5% and non-residential up 15%). This increase is
attributed to an average winter and spring compared to the prior year, and being dryer
than average in Q2 this year.
Operating Revenues YTD 6/30/2024 of$9.20M are 48% of the annual budget, which
equates to an unfavorable $364,000 on a straight-line budget spread basis. The YTD
June historical average is 42% of annual revenues, producing a 6% favorable variance.
Miscellaneous revenues are generally on budget. Annual forecast operating revenues
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of$19.33M are favorable $192,000 or 1% to budget
Operating Expenses YTD 6/30/2024 of $5.93M are 46% of the annual budget, which
equates to a favorable $568,000. Water operations at 45% of the annual budget is
pacing under budget primarily due to timing between months, with the annual forecast
on budget. Information Technology costs are running 2% over budget YTD, attributed
to timing between months, and are forecast to be on budget for the year. All other
departments are running at or under budget pace, and forecast to be at or below
budget for the year. The annual forecast for Operating Expenses is $12.96M which is
favorable $39,000 or 0% to budget.
Capital Expenditures YTD 6/30/2024 of $1.44M are 25% of the annual budget, under-
running due primarily to timing of projects for the year and between years. The annual
forecast is $9.99M, over the budget by $4.20M primarily due to timing of projects
between years. The water utility's 2022 debt issuance project proceeds of $15.94M are
forecast to be fully expended by the end of 2024, as planned.
Water, Other cash flow items:
Investment income YTD 6/30/2024 of$.12M is 49% of the annual budget and forecast
to be on budget for the year.
Debt service for water budget and forecast is $1.99M for the year.
The transfer from debt issuance project proceeds is forecast at $1.06M for 2024, which
is $1.06M greater than the budget. This variance is due to expenditure timing for
applicable projects between FY23 and FY24.
Other transfers In/Out have a budget net outflow of$0.17M, and is forecast to be
$1.32M, attributed to more capital reserves ($2.18M) and facility fees ($0.72M)
utilization, related to timing of capital expenditures in 2024 as compared to budget.
Water Utility's Net Budget Activity YTD 6/30/2024 is a net inflow of$0.21 M, Forecast
2024 is a net outflow of $1.56M, and Budget 2024 is a net outflow of$1 .56M. The
Forecast for the year is a net favorable $6,000 or 0% to budget and can be summarized
as follows:
• - $0.23M capital expenditures net of capital reserves utilization, greater than
budget (project timing between years)
• $0.19M revenues favorable to budget 1%
• 0.04M expenses favorable to budget 0%
• $0.006M total (favorable $6,000 or 0%)
Water Utility's key reserve balances (Attachment 3):
The operating reserve balance as of 6/30/2024 was $9.02M, and is $2.53M or 39%
over the policy goal of 50% of the annual operating budget. This favorable balance is
due primarily to being a mid-year measurement, with the majority of capital
expenditures occurring in the latter half of the year. For year-end 2024, after capital
expenditures in summer/fall and other budgeted uses, the balance is forecast to be on
budget at $6.65M and at the policy target balance. The capital reserve balance of
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6/30/2024 was $4.22M, and is forecast to be $3.30M at year-end 2024, which is $0.4M
below budget and financial master plan balance due to the timing of capital projects
between years. The restricted debt issuance project fund balance as of 6/30/2024 was $0.56M
and is forecast to be zero at year-end.
GOALS AND OBJECTIVES:
District Code 1 .05.020 Objectives:
1. Responsibly serve the public.
6. Manage the District in an effective, efficient and fiscally responsible manner.
District Code 1 .05.030 Goals:
1. Manage for Financial Stability and Resiliency
FISCAL IMPACT:
This financial review of actual to budget activity and year end projections for FY2024
serve as Board's review of the District's current financial performance in accordance
with District Code.
ATTACHMENTS:
1. Electric 2024 MidYear Fin Review
2. Water 2024 MidYear Fin Review
3. Reserve Balances
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Truckee Donner Public Utility District Attachment 1
2024 Mid-Year Budget Comparison and Annual Forecast Electric Utility
Electric Utility 2024 2024 - 12 Month
Annual YTD 6/2024 % of Annual % of
Budget Actual Budget Forecast Budget
Revenue
Residential $ 20,554,300 $ 11,574,667 56% $ 20,888,000 102%
Commercial 14,938,300 7,943,696 53% 15,151,000 101%
Interdept. Sales 1,579,500 635,998 40% 1,552,000 98%
Standby 15,600 - 0% 16,000 103%
Joint Pole and Pole Attachments 400,000 81,556 20% 400,000 100%
Misc Revenue 158,900 118,393 75% 159,000 100%
Interdeptmental Rent 581,400 290,700 50% 481,000 83%
Total $ 38,228,000 $ 20,645,010 54% $ 38,647,000 101%
$ 419,000 var to B
Operating Expenses
Board of Directors $ 360,449 $ 91,855 25% $ 342,000 95%
General Management 1,878,203 920,059 49% 1,859,000 99%
Administrative Svcs. 1,652,999 814,283 49% 1,653,000 100%
Conservation 1,021,561 383,737 38% 919,000 90%
Operations 8,983,693 4,144,087 46% 8,894,000 99%
IT/GIS 1,811,660 890,309 49% 1,812,000 100%
Building Maintenance 839,435 404,374 48% 839,000 100%
Total $ 16,548,000 $ 7,648,702 46% $ 16,318,000 99%
$ 230,000 var to B
Purchase Power Expense $ 14,764,000 $ 6,937,617 47% $ 14,500,000 98%
$ 264,000 var to B
Operating Revenue less Expenses $ 6,916,000 $ 6,058,691 88% $ 7,829,000 113%
$ 913,000 var to B
Capital Expenditures
Rates $ 6,222,500 $ 1,715,596 28% $ 7,138,000 115%
2022 COP Debt Project Proceeds - - 0% - 0%
Capital Reserve 5,660,000 6,429 0% 1,340,000 24%
Vehicle Reserve 1,452,700 269,875 19% 2,039,000 203%
Facility Fees - - 0% - 203%
Total $ 13,335,200 $ 1,991,900 15% $ 10,517,000 79%
$ 2,818,200 var to B
Other Non-Operating Cash Flows
Investment Income $ 236,000 $ 96,913 41% 218,000 92%
Debt Service $ (428,900) $ (215,591) 50% (429,000) 100%
Transfer In, Rate Reserve $ - $ - 0% - NA
Transfers In (Out), all other $ 6,262,700 $ (573,696) -9% 2,529,000 40%
Net Budget Activity - Electric $ (349,400) $ 3,374,418 n/a $ (370,000) n/a
$ (20,600) var to B
7/23/2024 9 30 AM I:\Budget Reports\2024\2024-06 Operating Report Electric tat Half
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Truckee Donner Public Utility District Attachment 2
2024 Mid-Year Budget Comparison and Annual Forecast Water Utility
Water Utility 2024 2024 - 12 Month
Annual YTD 6/2024 % of Annual % of
Budget Actual Budget Forecast Budget
Revenue
Residential $ 16,677,000 $ 8,128,576 49% $ 16,844,000 101%
Commercial 2,106,900 918,390 44% 2,132,000 101%
Standby 95,100 - 0% 95,000 100%
Misc Revenue 255,000 155,770 61% 255,000 100%
Total $ 19,134,000 $ 9,202,735 48% $ 19,326,000 101%
$ 192,000 var to B
Operating Expenses
Board of Directors $ 280,451 $ 72,783 26% $ 266,000 95%
General Management 1,745,114 775,170 44% 1,728,000 99%
Administrative Svcs. 1,620,092 815,479 50% 1,620,000 100%
Conservation 144,204 23,492 16% 137,000 95%
Operations 7,619,503 3,427,007 45% 7,620,000 100%
IT/GIS 1,003,836 524,149 52% 1,004,000 100%
Interdepartmental Rent 581,400 290,700 50% 581,000 100%
Total $ 12,994,600 $ 5,928,780 46% $ 12,956,000 100%
$ 38,600 var to B
Operating Revenue less Expenses $ 6,139,400 $ 3,273,955 53% $ 6,370,000 104%
$ 230,600 var to B
Capital Expenditures
Rates $ 4,837,100 $ 835,566 17% $ 7,235,000 150%
2022 COP Debt Project Proceeds - 575,193 0% 1,059,000 #DIV/0!
Capital Reserve - - 0% - 0%
Vehicle Reserve 526,000 34,018 6% 548,000 203%
Facility Fees 430,600 2,493 1% 1,148,000 203%
Total $ 5,793,700 $ 1,447,270 25% $ 9,990,000 172%
$ (4,196,300) var to B
Other Non-Operating Cash Flows
Investment Income $ 244,870 $ 120,328 49% 243,000 99%
Debt Service $ (1,984,800) $ (993,744) 50% (1,985,000) 100%
Transfers In, Debt Project Funds $ - $ 575,193 1,059,000 0%
Transfers In (Out), all other $ (167,870) $ (1,317,724) 785% 2,747,000 -1636%
Net Budget Activity -Water $ (1,562,100) $ 210,739 n/a $ (1,556,000) n/a
$ 6,100 var to B
7/23/2024 9:50 AM I:\Budget Reports\2024\2024-06 Operating Report Water 1st Half
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ATTACHMENT 3
Truckee Donner Public Utility District
Key Reserve Balances
Forecast
ELECTRIC UTILITY 12/31/2023 6/30/2024 12/31/2024 12/31/2024 % to
Actual Actual Forecast FMP Goal* Goal
Operating Reserve (GF) $ 7,775,783 $ 10,131,562 $ 7,510,000 $ 7,500,600 100%
Capital Reserve 10,672,016 10,814,322 9,632,000 6,237,846 154%
Vehicle Reserve 1,478,862 2,074,582 900,000 854,135 105%
Deferred Liability 2,169,608 2,215,880 2,260,000 2,231,016 101%
Rate Reserve 5,301,196 5,888,470 5,975,000 5,959,566 100%
Reserves, subtotal 27,397,465 31,124,816 26,277,000 22,783,163 115%
Facility Fees® 349,579 509,370 575,000 554,283 104%
Debt Project Funds® 6,736,089 6,879,775 7,000,000 6,900,000 101%
AB32 Reserve® 445,980 455,505 280,000 283,000 99%
Reserves, total $ 34,929,113 $ 38,969,466 $ 34,132,000 $ 30,520,446 112%
WATER UTILITY 12/31/2023 6/30/2024 12/31/2024 12/31/2024
Actual Actual Forecast FMP Goal*
Operating Reserve (GF) $ 8,183,055 $ 9,023,191 $ 6,650,000 $ 6,620,912 100%
Capital Reserve 3,059,077 4,222,621 3,300,000 3,738,860 88%
Vehicle Reserve 451,654 928,060 350,000 347,632 101%
Deferred Liability 113,826 117,069 120,000 117,122 102%
Reserves, subtotal 11,807,613 14,290,940 10,420,000 10,824,526 96%
Facility Fees® 2,034,180 2,046,169 1,600,000 1,583,788 101%
Debt Project Funds® 1,032,659 556,442 - - N/A
Other Restricted ® 723,393 1,256,063 725,000 720,000 101%
Reserves, total $ 15,597,845 $ 18,149,615 $ 12,745,000 $ 13,128,314 97%
® Restricted funds (all others are unrestricted or designated)
* Goals are established by District Code Title 3 and the current budget's Financial Master Plan (FMP).
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