04-23-2018 BPU RPT 14 - Laserfiche WebLink

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W A T E R E N E R G Y L I F E :11kA IN RIVERSIDE PUBLIC UTILITIES PUBLIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: APRIL 23, 2018 ITEM NO: 14 SUBJECT: RIVERSIDE PUBLIC UTILITIES PROPOSED BUDGET FOR FISCAL YEARS 2018/19 AND 2019/20 ISSUE: Recommend that the City Council approve the Riverside Public Utilities Department (RPU) proposed budget for Fiscal Years (FY) 2018/19 and 2019/20. RECOMMENDATIONS: That the Board of Public Utilities recommend that City Council: Approve the Electric Funds (including Public Benefits Fund) proposed FY 2018/19 budget totaling $385.1 million in revenues, $396.6 million in operating expenditures and $32.7 million in capital improvements and proposed FY 2019/20 budget totaling $399.8 million in revenues, $416.8 million in operating expenditures and $34.7 million in capital improvements. The difference between revenues and expenditures including capital improvements will be covered by bond proceeds and reserves; 2. Authorize the use of the Designated Electric Fund Capital Repair/Replacement Reserve for technology replacements in the amount of $200,000 per year for FY 2018/19 and FY 2019/20; 3. Authorize the use of the Designated Electric Fund Dark Fiber Reserve for dark fiber leasing operating expenses in the amount of $600,000 per year for FY 2018/19 and FY 2019/20; 4. Authorize the use of the Designated Electric Fund Mission Square Improvement Reserve for Mission Square facility improvements in the amount of $600,000 and $225,000 for FY 2018/19 and FY 2019/20, respectively; and 5. Approve the Water Funds (including Water Conservation Fund) proposed FY 2018/19 budget totaling $76.6 million in revenues, $70.7 million in operating expenditures and $22.8 million in capital improvements and proposed FY 2019/20 budget totaling $81.7 million in revenues, $75.3 million in operating expenditures and $18.9 million in capital improvements. The difference between revenues and expenditures including capital improvements will be covered by bond proceeds and reserves. BACKGROUND: On December 8, 2015, City Council approved the move to a two-year budget in the context of a five-year plan. The rationale for a two-year budget is that sound financial management includes multi-year financial planning. In addition, a two-year budget process will be more efficient and will allow time in the second year for long-term planning and focus on performance measurement and reporting. The Electric Page 252