Page 9 - Norris Electric News Dec 18
P. 9

The 2019 budget for capital im- provements is $9.6 million. Capital improvements are the necessary expenditures to maintain and im- prove the integrity of the struc- ture over time. Operations and engineering personnel carefully analyze the improvements needed to the District’s electric infrastruc- ture, facilities and equipment. The 2019 Capital Improvement Plan includes the construction or re- building of 51
miles of sub- transmission and distribu- tion facilities. The goal of the Capital Improvements
 Operating Expenses
The 2019 budget for operating expenses is $19.1 million. Operating expenses include all the other expenses that are necessary to operate and maintain the District. Operating expenses are like the front door, windows and roof of the structure and are the most visible features. These features must also withstand changing weather conditions and an occasional storm. The District carefully budgets its resources and each department is accountable for its adherence to the plan. Careful consideration is given to ensure that each expenditure supports District goals and objectives.
Net Margins
Anticipated net margins in 2019 are $6.8 million. Net margins are required to pay the District’s debt obligations and for reinvest- ment in the electric distri- bution system. The District continues to pay down its existing debt obli-
gations and does not anticipate any new borrowing in 2019.
Capital Improvements
plan is to complete projects that will improve system reliability, cre- ate efficiency and improve custom- er service.
Business Plan
Annually, the District prepares a Business Plan which is a four year period beyond the current year budget. The Business Plan uses broad assumptions to project future load growth, power costs, operating expenses and cash flows. The
Business Plan keeps us focused on the financial future of the District. It allows us time to reflect on the challenges and opportunities that lie ahead. The Business Plan is a key factor in making sure the structure will be solid for many
years to come.
As you can see,
Budget, Improvements and Business Plan is similar to assembling any other structure that you expect to stand the test of time. It must have a solid foundation and a long-term plan to maintain it well into the future.
the Operating Capital

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