HomeMy WebLinkAboutF-1.1. FY 2020-21 3rd 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: MAY 24, 2021
SUBJECT: FISCAL YEAR 2020-21 THIRD 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 March 31, 2021.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2020-21 3rd Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Sales of water through the third quarter were 3.4% higher than the third quarter of the prior fiscal
year, and billed amounts were 3.1% higher. The increase in sales and billed amounts was due to
a mostly dry winter 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 third quarter sales, billings,
and number of billed accounts for the Water Utility:
F-1Approved
Utility Board
5/24/21
Quarterly Financial Report
May 24, 2021
Page 2
3rd Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
11-12 5,832,676 $13,163,020 22,472
12-13 6,138,787 $13,665,652 22,707
13-14 6,091,647 $13,540,042 22,950
14-15 5,452,349 $13,176,832 23,198
15-16 4,696,053 $11,637,738 23,359
16-17 4,869,555 $13,148,728 23,545
17-18 5,483,914 $14,493,985 23,618
18-19 5,078,254 $15,390,850 23,777
19-20 4,956,905 $16,564,658 24,025
20-21 5,125,223 $17,076,736 23,425
Third quarter revenues were even and expenses slightly higher with the revenues at 75% of
budget and expenditures at 76%, respectively, which yielded a net income of $1,522,145. Third
quarter operations resulted in a $942,412 decrease in cash reserves from fiscal year end, after
funding $2.46M in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $31.0 million, which exceeds the Utility’s minimum reserve
requirement target of $19.6 million. The estimated debt coverage ratio remains steady at 1.73
times the amount of debt service obligations, which is above the 1.25 bond covenant
requirement.
ELECTRIC
Sales of electricity through the third quarter were 0.2% higher than third quarter of the prior
fiscal year, and billed amounts were 0.3% lower. The small increase was mainly due to an
increase residential consumption. The table below shows a 10-year trend of third quarter sales,
billings, and number of billed accounts for the Electric Utility:
3rd Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
11-12 180,099,346 $27,116,305 15,760
12-13 190,501,254 $28,129,703 16,017
13-14 189,279,818 $27,842,470 16,273
14-15 197,733,299 $30,404,653 16,571
15-16 196,509,373 $28,440,555 16,781
16-17 195,758,432 $28,516,108 16,886
17-18 196,805,281 $26,341,840 17,023
18-19 193,908,074 $28,211,508 17,088
19-20 185,977,846 $27,564,204 18,478
20-21 186,317,274 $27,468,686 17,110
Quarterly Financial Report
May 24, 2021
Page 3
Third quarter revenues were even and expenses lower with the revenues at 75% of budget and
expenditures at 70%, respectively, which yielded a net increase in income of $1,588,783. Third
quarter operations resulted in a $264,669 increase in cash reserves from fiscal year end, after
funding $1.32M in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $24.9 million, which exceeds the Utility’s minimum reserve
requirement target of $12.6 million. The estimated debt coverage ratio is at 6.60 times the
amount of debt service obligations, which is above the 1.10 bond covenant 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) 3rd Quarter Water Utility Operating Budget Report FY 20-21
2) 3rd Quarter Electric Utility Operating Budget Report FY 20-21