The Clarksville Department of Electricity dba CDE Lightband. Fiscal Year 2013 Budget Presentation

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1 The Clarksville Department of Electricity dba CDE Lightband Fiscal Year 2013 Budget Presentation

2 CDE Lightband Electric Division FY 2013 Proposed Budget FY % 7% Salaries/Benefits Operating Expenses 81% Capital Outlay

3 CDE Lightband Electric Division Budget of $161M contains 1.28% increase in revenues Less than.5% increase in expenses (0.27%)

4 Electric Division Proposed Budget Highlights: Focus on System Reliability Substations Extensive upgrade to Primary Substation Replace older Edgoton, Ladd and East Substations Distribution System Circuit Build Out New Construction Right of Way Work

5 Electric Division Proposed Budget Highlights: Focus on Customer Service Equipment Investment in equipment to provide quality service to our customers Employee Training Investment in employees Understanding latest technologies and trends

6 Electric Division Proposed Budget Highlights: Foundation for the Future AMI/AMR Munet Meters Average savings of $40,000 per month on sets/removals/disconnects Building infrastructure for. New TVA Rate Designs Load Control Outage Reporting Prepaid Metering

7 Payments in Lieu of Taxes CDE pays the City of Clarksville and Montgomery County payment in lieu of taxes, however they are calculated very similarly to property taxes. CDE pays the maximum amount allowed by state law Payment has doubled since the beginning of FTTH project, while providing a great service to citizens of Clarksville. Projected payment of $4.8 million dollars in All of which stays within Clarksville/Montgomery County

8 Payments in Lieu of Taxes $6,000,000 Payments in Lieu of Taxes $5,000,000 $4,000,000 $3,000,000 Fiber project begins Payments $2,000,000 $1,000,000 $

9 How do we compare in Operating Efficiency? $ Total O & M per Customer $ $ CDE $ per Customer Valley Average $ per Customer Total O & M per Customer ALL TVA MUNIS $ $ $ $50.00 $ (proj) 2013 (budgeted)

10 CDE Lightband Electric Division FY 2013 Proposed Budget Salaries/ Benefits Actual 2011 Original Budget 2012 Projected 2012 Proposed 2013 $7,869,243 $9,860,664 $9,330,218 $10,748,976 Operating Expenses Capital Outlay $127,514,211 $132,545,563 $122,601,142 $130,932,274 $11,063,635 $18,926,356 $17,951,599 $20,094,815 TOTAL $146,447,089 $161,332,583 $149,882,959 $161,776,065

11 FTE/New Employee Requests Full time Equivalent FY 2009 FY 2010 FY 2011 FY 2012 Proposed FY 2013 # of Full time # of Part time Full time Equivalent New Employee Requests Broadband Network Technician Broadband Installation Supervisor GIS Coordinator Part time: In Home Service Tech Part time: Operations Dispatch Expected Cost Reason for Position $36,587 Growth in operations $61,984 Growth in operations $31,075 Growth in operations $14,560 Growth in operations $13,260 Growth in operations

12 Number of Electric Customers Meters FY 2009 FY 2010 FY 2011 FY 2012 Projected FY 2013 As of June 30: 59,145 59,979 61,676 62,744 64,000

13 Capital Outlay Requests Electric Capital Outlay Request Cost Justification Annexation Payments $115,103 Made to CEMC after City annexes land. Bond Payments $5,827,838 Required payment of principal and interest. Computers and Hardware Upgrades $102,600 Normal operations Meters and Metering Equipment $2,630,860 Conversion to smart meters Office Equipment and Upgrades $293,400 Normal operations

14 Capital Outlay Requests Electric (Continued) Capital Outlay Request Cost Justification Plant Materials $5,294,833 Regular operations and growth Substation Construction & Materials $3,467,300 Extensive upgrade to Primary Tools and Work Equipment $102,050 Normal operations Transformers and Switchgear $1,236,830 Addition/Replacement Transformers Transportation $674,000 Normal operations Property Purchases $350,000 Potential new substation site

15 CDE Lightband Broadband Division FY 2013 Proposed Budget 0% FY % Salaries/Benefits 55% Operating Expenses Capital Outlay

16 Broadband Division Proposed Budget Budget of $15.7M includes 20.53% increase in revenues 15.82% increase in expenses $5.2M in payments to the Electric Division Cost Allocations Principle & Interest Payments to Inter Divisional Loan

17 Broadband Division Proposed Budget Additional Channels 5 Standard Definition 20 High Definition Continued Customer Growth

18 CDE Lightband Broadband Division FY 2013 Proposed Budget Operating Expenses Actual 2011 Original Budget 2012 Projected 2012 Proposed 2013 $6,536,964 $7,216,138 $7,140,154 $8,641,219 Capital Outlay $1,101,943 $6,395,319 $5,571,304 $7,123,682 TOTAL $7,638,907 $13,611,457 $12,711,458 $15,764,901

19 Capital Outlay Requests Broadband Capital Outlay Request Cost Justification Computers and Hardware Upgrades $621,334 Growth of operations Plant Materials $1,257,248 Growth of operations Tools and Work Equipment $4,000 Transportation $20,100 Plant Electronics $3,000 Payments to Electric Division $5,200,000 Cost allocations and repayment of interdivisional loan

20 Number of Broadband Services FY 2009 FY 2010 FY 2011 FY 2012 Projected FY 2013 Voice 626 2,246 2,950 3,650 4,315 Broadband 3,478 7,127 10,204 13,204 15,754 Video 2,772 4,738 6,154 7,554 8,885 Total Services 6,876 14,111 19,308 24,408 28,954

21 CDE Lightband Revenues By Source Revenues by Source Actual 2011 Original Budget 2012 Projected 2012 Proposed 2013 Electric $157,716,537 $157,349,384 $153,147,503 $159,367,175 Operations Broadband $9,575,005 $13,199,124 $12,443,813 $15,909,242 Operations Total $167,291,542 $170,548,508 $165,591,316 $175,276,417