HomeMy WebLinkAboutF-1.1. FY 2020-21 1st Quarter Budget Reports for Water and Electric FundsINFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: NOVEMBER 23, 2020
SUBJECT: FISCAL YEAR 2020-21 FIRST QUARTER BUDGET REPORTS FOR WATER
AND ELECTRIC FUNDS
BACKGROUND:
The attached reports include unaudited budget-to-actual performance for the Water and Electric
funds through September 30, 2020.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2020-21 First Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Sales of water through the first quarter were 0.9% higher than the first quarter of the prior fiscal
year, and billed amounts were 2.0% higher. The slight increase in sales was due mostly to a very
dry summer with zero days of rain. The table below shows a 10-year trend of first quarter sales,
billings, and number of billed accounts for the Water Utility:
1st Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
11-12 2,417,523 $5,156,389 22,457
12-13 2,581,898 $5,464,417 22,643
13-14 2,450,574 $5,240,322 22,888
14-15 2,240,761 $5,245,932 23,175
15-16 1,802,376 $4,125,782 23,356
F-1Approved
Utility Board
11/23/20
Quarterly Financial Report
November 23, 2020
Page 2
16-17 2,040,224 $5,054,514 23,427
17-18 2,125,058 $5,435,968 23,756
18-19 2,077,144 $5,731,539 23,761
19-20 1,987,901 $6,373,181 24,096
20-21 2,005,677 $6,504,857 24,100
First quarter revenues were slightly higher and expenses slightly lower with the expenditures at
24% of budget and revenues at 26%, respectively, which yielded a net income of $1,256,892.
First quarter operations resulted in a $501,311 increase in cash reserves from fiscal year end,
after funding $623,922 in capital improvements pursuant to the Capital Improvement Program.
The current cash reserve balance is $32.6 million, which exceeds the Utility’s minimum reserve
requirement target of $19.6 million. The estimated debt coverage ratio remains steady at 2.34
times the amount of debt service obligations, which is above the 1.25 bond covenant
requirement.
ELECTRIC
Sales of electricity through the first quarter were 0.3% lower than first quarter of the prior fiscal
year, and billed amounts were 1.0% lower. The small decrease was mainly due to a reduction in
commercial and residential consumption from COVID-19 economic slow-downs and continued
conservation efforts by customers. The table below shows a 10-year trend of first quarter sales,
billings, and number of billed accounts for the Electric Utility:
1st Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
11-12 68,825,090 $10,687,879 15,849
12-13 71,583,192 $10,922,876 15,925
13-14 71,811,811 $10,996,464 16,142
14-15 75,927,794 $12,260,244 16,555
15-16 73,275,667 $10,990,027 16,765
16-17 78,394,179 $11,880,930 16,839
17-18 79,989,639 $11,192,286 17,031
18-19 79,224,988 $11,813,135 17,532
19-20 72,835,947 $11,037,139 17,204
20-21 72,651,978 $10,929,172 16,998
First quarter revenues were slightly higher and expenses slightly higher with the expenditures at
26% of budget and revenues at 29%, respectively, which yielded a net increase in income of
$1,177,390. First quarter operations resulted in a $1.0 million increase in cash reserves from
fiscal year end, after funding $137,690 in capital improvements pursuant to the Capital
Improvement Program. The current cash reserve balance is $17.4 million, which exceeds the
Utility’s minimum reserve requirement target of $12.6 million. The estimated debt coverage ratio
is at 10.59 times the amount of debt service obligations, which is above the 1.10 bond covenant
Quarterly Financial Report
November 23, 2020
Page 3
requirement.
Prepared by: Reviewed and Approved:
Danny Smith Manny Robledo
Utilities Admin & Finance Manager Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) 1st Quarter Water Utility Operating Budget Report
2) 1st Quarter Electric Utility Operating Budget Report