06-08-2020 BPU RPT 13a - Laserfiche WebLink

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W A T E R E N E R G Y L I F E It RIVERSIDE PUBLIC UTILITIES P U B L I C U T I L I T I E S Board Memorandum BOARD OF PUBLIC UTILITIES DATE: JUNE 1, 2020 ITEM NO: 13a SUBJECT: RIVERSIDE PUBLIC UTILITIES PROPOSED EMERGENCY BUDGET FOR FISCAL YEAR 2020/21 ISSUE: Recommend that the City Council approve the Riverside Public Utilities Department (RPU) proposed emergency budget for Fiscal Year 2020/21. RECOMMENDATIONS: That the Board of Public Utilities recommend that City Council: Approve the Electric Funds (including Public Benefits Fund) proposed Fiscal Year 2020/21 emergency budget totaling $404.7 million in revenues, $426.2 million in operating expenditures and $41.7 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 for Fiscal Year 2020/21; 3. Authorize the use of the Designated Electric Fund Dark Fiber Reserve for dark fiber leasing operating expenses in the amount of $600,000 for Fiscal Year 2020/21; 4. Authorize the increase in annual funding to the SONGS Additional Decommissioning Liability Reserve by $419,000 to a total of $2 million annually beginning in Fiscal Year 2020/21; and 5. Approve the Water Funds (including Water Conservation Fund) proposed for Fiscal Year 2020/21 emergency budget totaling $84.7 million in revenues, $78.2 million in operating expenditures and $30.6 million in capital improvements. The difference between revenues and expenditures including capital improvements will be covered by bond proceeds and reserves. BACKGROUND: Due to the unprecedented economic environment prompted by COVID-19 and the ongoing shelter -in-place order, a one-year emergency budget is proposed for adoption because the fiscal impact of COVID-19 cannot be reasonably estimated at this time: the shelter -in-place order is the primary driver of current economic conditions and until this order is lifted, the timing and nature of an economic recovery remains unknown. Even after the stay at home order is lifted the toll it is has taken on the local economy and psyche of citizens will still be highly unpredictable. Time alone will provide us a better barometer of the impacts, but not until the order is lifted. Due to the impact of COVID-19 on public and community meetings, the City has streamlined the current budget process to adopt an emergency FY 2020/21 budget.