HomeMy WebLinkAboutF-1.1. FY 2019-2020 Second Quarter Budget Reports for Electric and Water FundsTO:
FROM:
DATE:
SUBJECT:
F-1
INFORMATION ITEM
HONORABLE CHAIR PERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
MANNY ROBLEDO, DIRECTOR OF UTILITIESc,..ltct-
FEBRUARY 24, 2020
FISCAL YEAR 2019-2020 SECOND QUARTER BUDGET REPORTS FOR
ELECTRIC AND WATER FUNDS
BACKGROUND:
The attached reports include unaudited budget-to-actual performance for the Water and Electric
Funds through December 31, 2019.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2019-20 Second Quarter Budget Reports for Electric
and Water funds.
ANALYSIS:
WATER
Sales of water through second quarter were 3 .9% lower than the second quarter of prior fiscal
year, and billed amounts were 0.1 % lower. Above average rainfall through December 2019
resulted in lower water sales for the quarter. The table below shows a 10-year trend of second
quarter sales, billings, and number of billed accounts for the Water Utility:
2nd Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
10-11 4,269,226 $9,248,071 23,037
11-12 4,248,276 $9,315,888 22,889
12-13 4,591,058 $9,972,924 23,239
13-14 4,453,167 $9,709,489 23,470
14-15 4,097,618 $9,677,957 23,779
UB-80
Approved
Utility Board
02/24/20
15-16 3,485,347 $8,360,920 23,857
16-17 3,702,589 $9,699,358 24,072
17-18 3,986,622 $10,346,480 24,105
18-19 3,861,929 $10,365,136 24,315
19-20 3,712,209 $10,254,412 24,076
Second quarter revenues and expenses were on track at mid-year with the expenditures at 48% of
budget and revenues at 50%, respectively, which yielded a net income of $1,847,136. Second
quarter operations resulted in a $4.20 million decrease in cash reserves from fiscal year end, after
funding 2.83 million in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $28.5 million, which exceeds the Utility’s minimum reserve
requirement target of $19.6 million. The estimated debt coverage ratio remains steady at 1.65
times the amount of debt service obligations, which is above the 1.25 bond covenant
requirement.
ELECTRIC
Sales of electricity through the second quarter were consistent with the same period last fiscal
year, with a slight decrease of 2.7%. The small decrease was mainly due to a relatively cool
summer and continued conservation efforts by customers. The table below shows a 10-year trend
of second quarter sales, billings, and number of billed accounts for the Electric Utility:
2nd Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
10-11 126,364,551 $17,834,281 15,608
11-12 126,375,198 $19,286,751 15,696
12-13 133,442,520 $19,908,665 15,987
13-14 132,946,386 $19,930,370 16,169
14-15 142,695,051 $22,660,093 16,546
15-16 141,959,657 $20,852,033 16,724
16-17 140,646,522 $20,857,703 16,870
17-18 142,515,807 $19,588,666 16,983
18-19 139,845,969 $20,554,704 17,236
19-20 133,086,482 $20,005,710 17,157
Second quarter revenues and expenses were on track at mid-year with the expenditures at 45% of
budget and revenues at 50%, respectively, which yielded a net income of $2,916,246. Second
quarter operations resulted in a $1.51 million increase in cash reserves from fiscal year end, after
funding 1.03 million in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $22.6 million, which exceeds the Utility’s minimum reserve
requirement target of $12.6 million. The estimated debt coverage ratio remains steady at 11.42
times the amount of debt service obligations, which is above the 1.10 bond covenant
requirement.
UB-81
Prepared by: Reviewed and Approved:
Danny Smith Manny Robledo
Senior Management Analyst Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1)2nd Quarter Water Utility Operating Budget Report
2)2nd Quarter Electric Utility Operating Budget Report
UB-82