The Electric Department Enterprise fund has many challenges for our community. Total customer load has significantly decreased which results in lower total revenue (about $3.75M less than expected in the 2008 plan for the Blue Lake dam). The Bond covenants require a collection which amounts to 125% above the debt service or approximately $10M/yr above the cost of Operations (which is about $8.4M). This $8.4M in Operations costs can be split into two cost components, one for labor $4.2M and one for non-labor $4.2M. Much of the labor cost is dictated by IBEW rates and is non controllable. The remaining $4.2M of operating costs are for maintenance, safety, regulatory compliance, Federal Permit requirements and other city services such as billing and accounting. In addition, significant infrastructure improvements are specifically identified and needed over the next ten year period. The attached calculator indicates the numbers which you can change and the numbers which are fixed. The adjustments made in FY17 impact the FY18 section.
ELECTRIC ENTERPRISE FUND FY17
ELECTRIC ENTERPRISE FUND FY18