HomeMy WebLinkAboutF-1. 4th Qtr 17-18 Budget ReportUB-130
APPROVED
UTILITY BOARD
09/24/2018
4th Quarter Water Sales/Billings
FY CCF Sales Billings* Billed Accounts
08-09 8,333,649 $13,988,554 23,014
09-10 7,853,732 $15,303,213 23,036
10-11 7,384,003 $16,600,100 23,100
11-12 7,598,788 $17,199,870 23,104
12-13 8,094,910 $18,043,742 23,302
13-14 8,020,459 $17,933,551 23,597
14-15 7,094,934 $17,209,924 23,871
15-16 6,215,491 $16,877,625 23,934
16-17 6,598,143 $17,698,854 24,156
17-18 7,095,830 $18,912,360 24,284
*Excludes unbilled receivables
Year-end operations resulted in $835,700 thousand decrease in cash reserves to a total of $24.4
million, and also yielded an estimated debt coverage ratio of 1.55 times the amount of debt
service obligations required. Overall, fiscal year end revenues and operating expenses were 99%
and 94% of budget, respectively.
ELECTRIC
Sales of electricity through fiscal year end 2017-18 were 1.2% lower than prior fiscal year. The
decrease is primarily due to milder weather and lower demand from medium and large business
consumers. The table below shows a 10-year trend of fiscal year-end sales, billings, and number
of billed accounts for the Electric Utility:
4th Quarter Electric Sales/Billings
FY kWh Sales Billings* Billed Accounts
08-09 253,116,501 $31,274,785 15,403
09-10 245,616,149 $30,099,992 15,276
10-11 238,728,205 $32,829,429 15,362
11-12 236,527,153 $35,315,430 15,567
12-13 247,422,942 $36,270,465 15,749
13-14 250,280,276 $36,415,546 15,955
14-15 257,361,329 $38,763,711 16,226
15-16 253,655,020 $36,343,584 16,740
16-17 255,975,406 $36,843,301 16,555
17-18 252,892,628 $33,329,648 16,695
*Excludes unbilled receivables.
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FY 17-18 retail revenues through fiscal year end decreased by about $3.5 million compared to
prior fiscal year, mainly due to lower cost of purchased power and bill reduction to customers of
$1.6 million resulting from GHG allowance earnings. However, expenses also decreased as a
result of lower purchased power costs, so fiscal year end revenues and operating expenses were
95% and 92% of budget, which actually increased cash reserves by $2.0 million by fiscal year
end. The cash reserve balance at fiscal year-end was approximately $26.8 million, which is in
accordance with the Utility’s minimum reserve policy target of $12.6 million.
Positive operating results and low debt service requirements have resulted in the Electric Utility
exceeding the minimum debt coverage requirement of 1.10 with estimated debt coverage ratio of
8.06 for the period ended.
FISCAL IMPACT:
There is no fiscal impact associated with the recommended action.
Prepared by: Reviewed and Approved:
Judy B. Tran Manny Robledo
Utilities Admin & Financial Director of Utilities
Services Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) Fiscal Year End Water Utility Operating Budget Report
2) Fiscal Year End Electric Utility Operating Budget Report
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Fiscal Year End
6/30/2017
4th Quarter Ending
6/30/2018
Percent of Prior
Year
Consumption - CCF: 6,598,143 7,095,830 108%
Cash and Investments before transfers: (1)29,252,726$ 28,417,029$ 97%
Cash and Investments after loans to other funds: (2)25,198,572$ 24,362,875$ 97%
Budget
FY 17-18
Actuals Thru
6/30/2018
Percent of
Budget
Retail Billing Amounts (3)19,157,532$ 18,912,359$ 99%
Other Revenues (4)2,445,413 2,645,500 108%
Interest Income 184,960 3,746 2%
21,787,906$ 21,561,606$ 99%
Expenses:
Production 2,894,235 2,764,249 96%
Purchased Water 4,762,832 4,507,961 95%
Transmission and Distribution 2,903,944 2,266,488 78%
Customer Accounting and Sales (5)4,247,493 4,312,850 102%
Administrative and Engineering 1,786,785 1,685,005 94%
Franchise Fees 381,151 403,744 106%
Debt Service Requirements (6)4,086,963 3,886,230 95%
21,063,403$ 19,826,528$ 94%
724,503$ 1,735,078$
Capital Investments & Transfers:
Capital Outlays and Projects (7)5,269,635 2,320,815 44%
Transfers Out (8)249,960 249,960 100%
5,519,595$ 2,570,775$ 47%
(4,795,092)$ (835,697)$
1.27 1.55
Notes:
(2) Loans and Advances to other funds at FYE 6/30/17 were $4,054,154.
(3) Retail Billing Budget based on projections of Customer Information System for last 12 months.
(4) Other Revenues include reduction in available Lease Rights.
(5) Includes 60% of Customer Service Fund expenses less offsetting revenue and other miscellaneous costs.
(6) Principal and Interest payment obligations on the 2012A and 2015 Revenue Bonds for Fiscal Year 17-18.
Change in Cash From Operations
(7) Capital Outlays and Projects under budget due to ongoing construction of Main Replacements and Reservoir Rehabilitation.
(9) Total Revenues less Production, T&D, Cust Acctg, & A&G divided by Debt Service Payments. Minimum debt coverage
Debt Coverage Ratio (9)
Water Utility Quarterly Budget Report
Fiscal Year Ending June 30, 2018
(UNAUDITED)
Consumption and Cash Reserves
Budget Line Item
Revenues:
Total Revenues
Total Operating Expenses
Total Capital Investments & Transfers
requirement is 1.25 per bond financing agreements.
(1) Includes Cash and investments and Due from other funds. Reserve Policy has minimum target of $19 million.
(8) Interest Income will be transferred to the CIP Fund by policy if there is positive net income at fiscal year end.
Net Increase (Decrease) in Cash/Reserve
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Fiscal Year End
6/30/2017
4th Quarter Ending
6/30/2018
Percent of
Prior Year
Consumption - kWh:255,975,406 252,892,628 99%
Cash, Investments & Cash Reserves: (1)24,841,645$ 26,848,933$ 108%
Budget
FY 17-18
Actuals Thru
6/30/2018
Percent of
Budget
Revenues:
Retail Billing Amounts (2)34,292,900$ 33,329,648$ 97%
Resale Revenue (3)3,479,486 2,697,198 78%
Other Miscellaneous Revenue 295,000 101,373 34%
Interest Income 113,500 65,136 57%
38,180,886$ 36,193,355$ 95%
Expenses:
Purchased Power (3)17,459,287 17,038,079 98%
Transmission/Dispatching (3)4,623,314 3,703,297 80%
Operations and Maintenance 3,723,858 2,877,729 77%
Administrative and General (4)5,268,114 4,889,437 93%
Franchise and In-Lieu-Tax 3,429,290 3,239,523 94%
Debt Service Requirements (5)952,690 953,664 100%
35,456,552$ 32,701,728$ 92%
2,724,334$ 3,491,626$ 28%
Capital Investments & Transfers:
Capital Outlays and Improvement Projects 2,487,025 1,258,774 51%
Transfers Out 225,565 225,564 100%
2,712,589$ 1,484,337$ 55%
11,745$ 2,007,289$
7.46 8.06
Notes:
(1) Includes Cash and investments and Cash held for Rate Stabilization. Reserve Policy has a minimum target of $12.6 million.
(2) Retail Billing Budget based on projections of Customer Information System for last 12 months.
(5) Principal and Interest payment obligations on the 2012B Revenue Bonds for Fiscal Year 17-18.
(6) Total Revenue less Cost for Purch'd Pwr, T&D, O&M, and A&G, divided by debt service. Minimum debt coverage requirement
is 1.10 per bond financing agreements.
Total Operating Revenues
Electric Utility Quarterly Budget Report
Fiscal Year Ending June 30, 2018
(UNAUDITED)
Consumption and Cash Reserves
Budget Line Item
(4) Includes 40% of Customer Service Fund expenses less offsetting revenue and other miscellaneous costs.
Total Operating Expenses
Total Capital Investments & Transfers
Net Increase (Decrease) in Cash/Reserve
Debt Coverage Ratio (6)
(3) Source for Resale Revenues, Purchased Power, and Transmission/Dispatching: Power Resources Division.
Change in Cash/Reserves From Operations
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