05-13-2019 BPU RPT 12 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E RIVERSIDE PUBLIC UTILITIES Wad Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: MAY 13, 2019 ITEM NO: 12 SUBJECT: RIVERSIDE PUBLIC UTILITIES MID-CYCLE BUDGET UPDATE ISSUES: Recommend that the City Council approve the Electric Funds (including Public Benefits Fund) proposed FY 2019-20 budget amendments comprising of $3,309,000 reduction in revenues as detailed in Attachment 1 and $7,266,300 increase in expenditures as detailed in Attachment 2, authorize the use of the Electric Fund Designated Capital Repair/Replacement Reserve for heavy-duty vehicle replacements in the amount of $2,400,000, and approve the Water Funds (including Water Conservation Fund) proposed FY 2019-20 budget amendments comprising of $7,830,088 increase in expenditures as detailed in Attachment 4 as part of the Riverside Public Utilities Mid-cycle budget adjustments for FY 2019-20. RECOMMENDATIONS: That the Board of Public Utilities recommend that the City Council: Approve the Electric Funds (including Public Benefits Fund) proposed FY 2019-20 budget amendments comprising of $3,309,000 reduction in revenues as detailed in Attachment 1 and $7,266,300 increase in expenditures as detailed in Attachment 2; 2. Authorize the use of the Electric Fund Designated Capital Repair/Replacement Reserve for heavy duty vehicle replacements in the amount of $2,400,000; and 3. Approve the Water Funds (including Water Conservation Fund) proposed FY 2019-20 budget amendments comprising of $7,830,088 increase in expenditures as detailed in Attachment 4. BACKGROUND: The Riverside Public Utilities (RPU) Electric and Water Funds fiscal year (FY) 2018-20 biennial budget was approved by the Board of Public Utilities on April 23, 2018, and was subsequently adopted by City Council on June 12, 2018. The biennial budget incorporates two (2) fiscal years and was developed in the context of a five-year financial plan. The Electric and Water Funds FY 2018-20 biennial budget and FY 2018-23 five-year financial plans incorporated the Electric and Water five-year rate plans which were approved by City Council on May 22, 2018. The purpose of a mid-cycle update is to recommend amendments to the previously adopted FY 2019-20 budget based on new financial data and significant events that impact the Electric and Water Funds' finances. This report provides a brief overview of the recommended adjustments to revenues, expenditures, and capital projects for both the Electric and Water Funds. These recommendations will be incorporated into City Finance's FY 2019-20 Mid -Cycle update that will be presented to City Council on May 21, 2019.