03-22-2021 BPU RPT 05 - Laserfiche WebLink

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W A T E R E N E R G Y 1, T F F IM& RIVERSIDE PUBLIC UTILITIES PUB LIC UTILITIES Board Memorandum BOARD OF PUBLIC UTILITIES DATE: MARCH 22, 2021 SUBJECT: RIVERSIDE PUBLIC UTILITIES PROPOSED BUDGET FOR FISCAL YEAR 2021/22 ISSUE: Review and recommend that the City Council approve the Riverside Public Utilities Department proposed budget for Fiscal Year 2021/22. RECOMMENDATIONS: That the Board of Public Utilities recommend that City Council: 1. Approve the Electric Funds (including the Public Benefits Fund) proposed Fiscal Year 2021/22 budget totaling $404.1 million in revenues, $411.2 million in operating expenditures and $48.3 million in capital improvements, with the anticipated difference between revenues and expenditures including capital improvements to be covered by $38.4 million in bond proceeds and $17.0 million from 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 2021/22; 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 2021/22; and 4. Approve the Water Funds (including Water Conservation Fund) proposed Fiscal Year 2021/22 budget totaling $86.1 million in revenues, $78.9 million in operating expenditures and $21.5 million in capital improvements, with the anticipated difference between revenues and expenditures including capital improvements expected to be covered by bond proceeds of $18.1 million and returning $3.8 million to reserves. BACKGROUND: Due to the unprecedented economic environment caused by COVID-19, a one-year emergency budget for Fiscal Year (FY) 2020/21 was adopted by City Council on June 16, 2020. Due to the impact of COVID-19 on public and community meetings, the City has streamlined the current budget process to adopt the FY 2021/22 budget. It is anticipated that the City will return to a two- year budget process next year with the FY 2022/23 — 2023/24 budget.