HomeMy WebLinkAboutF-1.1. FY 2021-22 1st 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: NOVEMBER 22, 2021
SUBJECT: FISCAL YEAR 2021-22 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, 2021.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2021-22 1st Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Sales of water through the first quarter were 2.5% lower than the first quarter of the prior fiscal
year, and billed amounts were 3.5% lower. The decrease in sales and billed amounts was due to
increased conservation efforts and the transition from bi-monthly to monthly billing for the
Azusa Valley Water customers. 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
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
16-17 2,040,224 $5,054,514 23,427
F-1Approved
Utility Board
11/22/2021
Quarterly Financial Report
November 22, 2021
Page 2
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
21-22 1,955,143 $6,274,708 23,420
First quarter revenues and expenses were slightly higher with the revenues at 35% of budget and
expenditures at 26%, respectively, which yielded a net operating income of $4,173,422. First
quarter operations resulted in a $2,046,931 increase in cash reserves from fiscal year end, after
funding $1.0M in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $26.2 million, which exceeds the Utility’s minimum reserve
requirement target of $19.6 million. The estimated debt coverage ratio remains steady at 4.02
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 2.4% lower than first quarter of the prior fiscal
year, and billed amounts were 4.1% higher. The small decrease in sales was due to lower
commercial consumption partly due to the COVID 19 restrictions. 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
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
21-22 70,837,471 $11,374,456 17,341
First quarter revenues and expenses were slightly lower with the revenues at 33% of budget and
expenditures at 24%, respectively, which yielded a net operating income of $3,879,552. First
quarter operations resulted in a $3,058,319 increase in cash reserves from fiscal year end, after
funding $115K in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $24.1 million, which exceeds the Utility’s minimum reserve
requirement target of $13.5 million. The estimated debt coverage ratio is at 16.43 times the
amount of debt service obligations, which is above the 1.10 bond covenant requirement.
Quarterly Financial Report
November 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) 1st Quarter Water Utility Operating Budget Report FY 21-22
2) 1st Quarter Electric Utility Operating Budget Report FY 21-22