HomeMy WebLinkAboutF-1.1. FY 2020-21 2nd Quarter Budget Reports for Water and Electric Funds_ApprovedINFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: FEBRUARY 22, 2021
SUBJECT: FISCAL YEAR 2020-21 SECOND 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 December 31, 2020.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2020-21 2nd Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Sales of water through the second quarter were 1.7% higher than the second quarter of the
previous fiscal year, and billed amounts were 21.0% higher. The increase in sales and billed
amounts were due to a mostly dry fall season and the transition from bi-monthly to monthly
billing for the Azusa Valley Water customers. 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
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
15-16 3,485,347 $8,360,920 23,857
F-1Approved
Utility Board
2/22/21
Quarterly Financial Report
February 22, 2021
Page 2
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
20-21 3,776,096 $12,450,619 23,428
Second quarter revenues were slightly higher and expenses slightly lower with the revenues at
51% of budget and expenditures at 47%, respectively, which yielded a net income of $1,985,400.
Second quarter operations resulted in a $747,557 increase in cash reserves from fiscal year end,
after funding $1.2 million in capital improvements pursuant to the Capital Improvement
Program. The current cash reserve balance is $29.7 million, which exceeds the Utility’s
minimum reserve requirement target of $19.6 million. The estimated debt coverage ratio remains
steady at 2.19 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 1.6% higher than the second quarter of the
previous fiscal year, and billed amounts were 1.0% higher. The small increase was mainly due to
an increase in residential consumption. 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
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
20-21 135,253,522 $20,185,170 17,014
Second quarter revenues were slightly higher and expenses slightly lower with the revenues at
53% of budget and expenditures at 46%, respectively, which yielded a net increase in income of
$2,709,794. Second quarter operations resulted in a $2.26 million increase in cash reserves from
fiscal year end, after funding $447,377 in capital improvements pursuant to the Capital
Improvement Program. The current cash reserve balance is $22.7 million, which exceeds the
Utility’s minimum reserve requirement target of $12.6 million. The estimated debt coverage
ratio is at 10.88 times the amount of debt service obligations, which is above the 1.10 bond
covenant requirement.
Quarterly Financial Report
February 22, 2021
Page 3
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) 2nd Quarter Water Utility Operating Budget Report FY 20-21
2) 2nd Quarter Electric Utility Operating Budget Report FY 20-21