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HomeMy WebLinkAbout3A Presentation providing information related to the development of biennial budgetC I T Y O F R E DDI NG C A L I F O R N I A CITY OF REDDING REPORT TO THE CITY COUNCIL MEETING DATE: May 4, 2023 FROM: Barry Tippin, City Manager ITEM NO. 3A ***APPROVED BY*** btippin*dtyofredding.org Al'�, 4 A � � IV, te�� ippin, Ci an e 5/3/2023 btippin*dtyofredding.org SUBJECT: 3A --Consider presentation providing information related to the development of the biennial budget. Recommendation Accept presentation regarding the development of the City of Redding's enterprise funds, including Redding Electric Utility, Water Utility, Wastewater Utility, Storm Drain Utility, Solid Waste Utility, and Airports, Biennial Budget for Fiscal Years 2023-25 and 10 -year Plan; and provide general direction to staff regarding the proposed elements that make up the same. Into P x � w F?E�❑ TABLE I- PIPESUMMARY pipe Pipe Length (f t) and Percentage by Age Total Diameter 0-30 31,40 >60 Unknown (Feet) < 8 in 471,*672 76% 11 lJ62,J06 73% 202,.429J77JOO 81% 74% 2 10in9.261 0% 1% 3t840 F 2% t513 1% ,614 - 2 in 91.*601 �.�. ��. �..,._,a_� ,�.�.m�„Lx�,n... Hm.,...h� . ��,.��.m_ ,_m..�.,��_,��m,_,.� {{ 4 15% 18% 29,835 z12% ,a...�r..� ..._ 12% .�x.r, n.,.�.a_... .,,_.�, �� .��m .�tiN...w._m.��„��� 57,o742 �.._M� .,,... ..�.., g , 15&16 in 35 t02O 6% s 65,f752 4% 11699 1% k 7.4375 2% 109,1846 18 *in 2p747 0% 619 1 s- 1% M959 4% 1 1% '- 5,t813, 20 i*n 317 0% 789 0 % 231 0 00/ 0% 11337 24 in 3,767 1% 37,131 2% 102 0% 1 18,1096 4 % 59,096 .. ...... .. . ........ w 30 n 130795 2% 16,1202 E 1%a � � c 24,727 » 5% 54,724 � n 204 0%z � 113 4 0%4,088 k 1% 4,405l 2 in save x4 .. .a.,..,:. .y Ms..0% 00%0 4 ggg 1,06,0 9 ,...u.<..,.a:...,v,-., 0% ., ...,,.,. ......,.,..,. ,.. .. ,_... 1609 $X in 0% uan 0% 419 . 419Total.* 619,123 4 1,589,820 > 249,095t k461,950 Y 21919*988 Percent 21*20% 54*45% 8*53% 15*82% '41 WIA mirai ip iiiiiiiiiiiiiii ENRON III! pue El RMe Revenue 29,20T 660 31, 72,55, 220 34,28T 538 :36,891,576 4,0, 053, 9 73 Personnel (5, 7.'--,' 9, 0 9 0t 5, 15. 11, 2 2 0x 5, 786,7811 186,120) r6, 4 955, 4 26) O&M Expense (7. 7 15-4 - 100 t7.958,630 -,i 3. 194,10 4 f8,436,5415', X8,66 -1 58j Interdepart mental R 117,590', J t6,910,770 i,77, 18 5, '17 7 4) t7,47176904,t ,71 2" i7, , 9 0 at. ervi c e Exp: n s e (Rat e sji ? - t 9 -118, 7 9 S,, i - & 79,5'� 97 (978:795) Capital Expense fes) 17,501,9301, 0 3. -399,6 71 11, 680,779,t f 10, 33377 468,f 19,7 19,690' TcAaf Expense (38, 102 7 10 321. 780,295,1 33-3 . 8 -2 6, 2 33 (,33,410,670,, (4-1,649,119', Transfer to Rdling Stoc�,, 4 ocount j250,0 , (250,00 0 (250, OMi 2,50, 0 0 01 (300,000", Net Income (Lzss) }9. 145, 050 (2, at 0 5, 075 211-305 3,230,9433 (318955, 146) 0"resbiewd 9 Cash 8, L -S,- 5_�, 8, 3 8 5, 7n 763 6, DOZ 0", 9,232,973 5,33-7827 Reco;,T_da-d Res a-Tva 123%' 11*0 5,% Czpft2i 7,157,1,3�4 7, a 5 5, f a a 7.1fI53,03d 7,80 -S. 0 221 S. 5!, 5, 03 9-4 Pump house I P,,,te Revenue Bond Revenue 3& 000, 000 Capital Expense 1, 41.23 7, "15 6 2,,t Pump House I Cash 11,237,36-21, 11,237,362 (01 Rolling to(9193- T ,stems InlRevenuelInterest 255, -17 0 257,375 257402 256-412 306,4 Tfansfers Out (Purchases.,; (6 1177 f, 2 6 Z 5 4 55<; 35 5 2081 2 57, 3 9 7), (54c, 681 Rolfing Stock Batance 431,412 433,787 346 189 352,601 12 9, 0 81-5 TOW Rot* cash 911 12! L 6,74" Ex,p;;Z*7777 1,52&833 1.607,087 1,634,859 1,69,13.615 1,722.817 Capftal Expense (Fees,, 160, 350't r 1 1 k t 0 54,677f, If 159 9 b- I f 165,425, Debt Sefyice ( x 1 0 3 7, 6 7 6),, f 1, 037, 6 7 6, f (1, 0 37,t76" i Total Exeense, 16 a, 3 5 C,,,, 1, 6 f"81 52, 11" 1, 19 Z 3 5 3 f.1 197 637"iIry 101 'I ffmaot fee Cash AA- OAK 7" tA- AIA, 7"71111, ra iirai ip BRA te- to Reve nu e Expenses Personnel 0 & IVI Interdepartmertal Ctiarges Captal Project sI'lrMrEms -vemert. s Debt 9 er,,Ace Fee Expense paidDy rates Total Expense Transfer to Rolling StoCk Transfer to Discion Holding A c Net Incom .... ........... . .. Rec,arremroac Reswo ve 12f,% 0!hl - -5% Capul'4 UV Disentection Holding Account Rolling Stock Transfers Ing Revenue) Merest Transfers Out (Purchases, Rollina Stock Endin-a Cash Balance 57 3 06, 2 1, 0 37,24-4,473 A 310v 198 41.16&300 4.21, 6 Ft :287 (7.54'3,94&' (7,381,3901 0-89-0,480) (8.425,030", (8, 996' 300) (4, 4 0 8, 6 2 0 449�5220` 2' (4,628,2*1-1) (4,765,20I)l 4. 906 . 210) f, 7, 473 7, 7 650 f7.023,900) 17 303 430) i 7, 59 4 � C43 0 7, 8 9F w, 300) 8,61-71,045) 13, 6 3 8, 10 4-5), 13, 7.32 8 6 1 15, 4 5315) (3158 6, 8 80) �3,587,520` (3 588 640) (3,586,72 0! ($'5'a8' 000) (403,885 3 33 5, 2 5,;5P 1 81 137 (384.1661 361, 9 F551) (41, 852, 130 (44,461,390) -,958,788, (38,941 366, 1'41,22 300) (260, 000 (300,000" '300, OLKT� (300,0007 3 00, 0 0 0) 0 5CX-J- 000) (1,500.000, , 500, 000) (6,05",9 20 (7.516,91 44&590) 424,934 f 324,013) 7 '77 7 77777777 F. 73 1 ZZ 15.407,323 51.547' 181 IF 93 5,38 22a.323 - 1, 500 000 3:000 00 4, 500, 000 2 75. X27 337,672 321,7661 3 0 5, 505 6 315,851 (2 11, O65'r (653,788" (391,243) (�0 12K, 7 7 15J) r -F, 92, 171 276,054 I i I 206572 : i!! i 440,067 520,142 ! 7, 7, 7111 I 1, 720,2'9'0 1,792,260 1.8 .232 1,866,774 1,893,720 0 06, 5 55 (8'109'535} (601159i f,22 3 3, 4 1 0A (237.425) 2,017,6201�201 (2017,98M -�018-610i 7 530) (2,018,250) i G2', 124,175' (10, 12 7,515) (2,62%,3659 (2.250, 9-40) (2,25,51675)l La IEM, 4 VASE IL MW L c' ---------------- -------------E'- Community Cleanup/Vegetation / 2/d ,f <y : Community ?r\ Program/SCO/Code..:»a:,:a /w�\\«°..»«Custodian < . . »<2y /©y»: d6? }2 y»» Public Trash Receptacles Be ^ »..:.................. ........................�................ 2»\.»<2....»22m:,(Big,.��w� :.......�.......:.............�/ ^\\/«»..............\�\3\\\�` . . , AccessDenial a �� \?/\ . 15500 Station.F\^. . .......� \2 d Transfer\\.. . ....� \\\\.\... . � .: . .. ... .... :. � . ... . ... . . . .. . ...... ... .. . . .: .... . ....... .... 1,0 . .. .......... .... �.. . .. ... . .. .. . �� /�� . :��� 37,000 � Shopping CartManagement .... \ \ . . \d\}?» .§< .. ....... \\\dO Public Portable Res^ ..... . ... ... . . ... .� ..... .. .. . . . . �«\5 7.\. /0 . 37,,000 ... Pdl`?^Programs (Vouchers, / 7-/-Stre \^:\»_».a. »\ Public 151350 15y83 : ..\U Utter Programs Funded b /\/}»\ Waste . \t/i\\ Y ROO Dtic worKS 50tid wast utl' t F y lmd� 't Fiscal y ..=S/24 • 8 } i i '' 30,055,610 32,0,54,M 32,UO,M Y Ifo provl'd;,-,,%d after packet distributed and/or t meeting ITE.. No., Ltatt coorC a4,r� ,e� w C" -of Redding Ailrports Ten Year Plan 7iscal Year Endl*na 2024 & 2025 Fiscal Year Proposed Proposed a,Oa3- a -4 a0a4-a,5 2VG'2-5-a3— aflia6-:Z7 Beginniong Cash - T- nrestricted501,-,36 26-,7 2.52 28,3,86,9 24,804 -19141 7-7. 5 9 Beginning Cash - Restricted (PFC-) (13'>,3o6) 2,38 (6-2 ,,9,34 10971;341-) 34 1) (4, 0, 77,-341) -534-0 Revenues 31.526X430 �131 0 58,841 3,., S9 -f 12 2-5 4,028 4,17'1,869 N'Tel Transfers (3085 010) (302�laoo) (302100o) (302 1000) 0 215 0' ,0) (3025ao-O), Total. Revenues 3212�:Ls,43,0 '20262- 1qO 324,56.)84,.t 3-,,5895225- 3�,726.28-33 3L5i8&9286q Personnel costs (4,493 (�t 6,5o) ("I =t,78 4597) -09) ('1' 14 621 --) (1 (1 10 041) Operating Costs (.t IS, -,450) ->2 (1 a6 3 Capi 9 tal Oultllav (1,38,76-0) 9, (55000) (28'659) Deb t Serv'I"Ce 1 (92 ��540) (4 , , 2,,3 1. o) (42�-300) (42101290) (42�3'ao) (4 3 0 -2, -0) Sa'VIngs 6o1924 :12 62 2 -3 6z -:,'718 6,52537 r-7 67,417 69 -NN""et Expenditures (:3,�2i.6,446) (22 (.3 1. 69 43 C 607) (3,3,50,72_3) (3-4727 Ending Cash -'Unrestmicted 50,11,5,36 324,tSO4 :�o&-719 141 2,52.,7759 283,869 364,_%3-58 Endlng Cash -- -,Restricted (PFC) 2381(62 -5934 9 09' .34 1) (752!,,.34:1) Ending,cash, Ralance (485��20LO) (15 2_5,28 364�3-58 PrQjected Ending Cash after I required adjustments 740,470 (7 %5311-7) (485,200) (1154 58-22) 221,528 .36453,58 1 1111111 1 1 1111 1111 111 Ending Cash as Percentage of Expen - tures 8.4% 7.8%. 9.8%, Ending Cash 'm�/ PFC- as Percentage of Expenditures PrIolected Personnel Percentage 4-8 - 796 11 1 Iii pilip 11, � 111, � Mu, M4M Two KPIs were identified in each category, allowing for ongoing assessment of the Utility's overall performance. Organiz,'ational KPI Dashboard ?F-9-intilp j1Z KPI Health State Total 10 3 Ok I Elkitill4i CUSTOMER SATISFACTION FINANCIAL OPERATIONAL PERSONNEL SAFETY 13 851 853 852 838 852 StatUS Key Performance Indicator Metric Goal Monitor residential bills to ensure affordability Residential bill as a 910 of median Income ora of Income in our community (Median Income for a Family of 4, Shasta County) 2.5 Develop annual customer service survey to Customer Service Survey developed annually by Report annually S be distributed throughout the community January and distribution completed by March by May, 100010 Report On -Time Update Interval CY 2020 CY 2021 CY 2022 Annually 2.43% 1.87% 1.85% Annually N/A N/A in Progress Status Key Performance Indicator Metric Goal Update Interval Total number of days of cash on hand Measured as a total number Goal 150 Days, Quarterly Min 75 Days REU maintains an appropriate credit rating in order to Fitch's Ratings access funds at the cheapest possible rates to reduce AA- Annually the impact on customers 155 154 150 145 x 140 C 0 135 4" (A 130 M U 125 w 0 120 115 110 105 r FY22 FY22,01 FY22.Q2 FY22,Q3 FY22,04 FY23.01 FY23.Q2 FY23.Q3 154 138 136 134 144 120 109 AA- AA- AA- AA_ AA- AA- AA- 60 50 40 N 30 20 10 0 Status Key Performance Indicator Metric Goal SAIDI (System Average Interruption Duration Index) - Average time a customer is without power. during a 3 YR Average, h1easured as average Trending Down defined period of time, 3YR Average minutes Energy resources meet or exceed NEP (Net Exposed Position) prompt fiscal year forecasted energy needs % of Power under contract 90 to 115% 51.58 58.63 58.32 2020 2021 3 YR Average, Measured as average minutes 2022 M Update FY23, FY23, FY23, In'ter.-al 2020 2021 2022 Q1 Q2 Q3 Annually 51.58 58.63 58.32 Quarterly 98% 100% 112% NEP On -Peak NOP On"P-k CL Off -Peak CL Off -Peak NOP NOP NOP Pcvs% COR% RARY. TMOR Prompt Month 108% 111% 111% 105% 105% Prompt Quarter 110% 172% 106% 137% 96% Bal Fiscal Year* 112% 108% 109% 107% 107% 103% 113% 107% $0,9 Fiscal Year +1* 112% 122% 109% 141% 107% 94% 124% 110% $2,8 Fiscal Year +2* 95% 124% 117% 147% 126% 108% 127% 112% $19 All metrics for furture periods *Pro Forma = Reforecast for Balance of Fiscal year and beyond 15% y 14% IM ,j 14% C 13% 13% L a 13% 12% 12% 12% G 11% rUv 11% ',> 11 % 5.OVICa 14% 4.12% 0 4.00'>6 3.39°l0 to 13%, C 3.00% 2.76% 2.79% i+ 2.2700 x 11% FY22, 02 FY22, Q3 FY22, 04 FY23, Q1 FY23. Q2 Quarter pl 2.001r1c� 0.58 NJ O.00e/o u Quarter FY23, 03 FY22, 01 FY22, Q2 FY22. 03 0 FY22, Q4 0 FY23, Q1 FY23, Q2 FY23, Q3 qgg -000,t Status Key Performance Indicator tietrc Goal Update lmerval FY22. Q1 FY22. Q2 FY22, Q3 FY22, Q4 FY23. Q1 FY23. Q2 FY23. Q3 Continual) monitor em to Qe vacanc rate Total number of vacant positions / total number of positions , 10% Quarterly o 15 /a , , q 13 /0 12 /0 11 /a 0 0 12„ 13 l0 14/o { Review employee satisfaction, measured by Separations (excluding full -formula separations retirements) /Total Employees (%)Trending Down Quarterly 4.12% 0.58% 2.27% 1.10% 2.76% 2.79%3.39% 15% y 14% IM ,j 14% C 13% 13% L a 13% 12% 12% 12% G 11% rUv 11% ',> 11 % 5.OVICa 14% 4.12% 0 4.00'>6 3.39°l0 to 13%, C 3.00% 2.76% 2.79% i+ 2.2700 x 11% FY22, 02 FY22, Q3 FY22, 04 FY23, Q1 FY23. Q2 Quarter pl 2.001r1c� 0.58 NJ O.00e/o u Quarter FY23, 03 FY22, 01 FY22, Q2 FY22. 03 0 FY22, Q4 0 FY23, Q1 FY23, Q2 FY23, Q3 qgg -000,t Status Key Performance Indicator Metric Total number of fires started by REU Total number of fires started by REU Total recordable injury rate of employees # of Recordable Incidents x 200,000 (TRIR) Total HRS 'Norked Goal 0 per year (CY) < 3,0 per year (FY) 10 9 5 47 2 0 H- 9 V) 'c: 4 Q) :9 CU 3 0 2 I 1.6 YEAR YEAR 0 2020 0 2021 0 2022ffi'-�' 2022 0 2020 0 2021 Personnel Expenditures 0 Increase by $4.5 million from Adopted No new ositions are request&i p Captures changes to Council -approved MOUs Captures 10 positions added in FY22 part of INTOW-1 I I, W-1 '0-1 Offset by declining retirement costs iillil�� ilgr 5. Customer Programs & 0=0 Services increases due to regulatory requirements and interdepartmental allocations 4. Controllable O&M is only increasing by approximately $1 million, or 5%, from FY23 to FY25 1. About $3.5 million due to increased power supply costs from higher energy & natural gas prices Increasing bV q`7.2 million from P F -V , 2-3 to FY25 41%W 3. Reduced hydro deliveries based on policy and operational changes 2. PG&E Transportation increasing by approximately $2.2 million MI No new proposals a) this time. M, Direct debt remains flay at $14.4 million through Fiscal Year 2025 11111pp pipq Al Staff will return W -11th. proposals related to planried' capital otit"lay (included in five - ye - a r p! a I Ml City of Redding's Electric Department