HomeMy WebLinkAboutG-1.1. Fiscal Year 2023-24 1st Quarter Budget Reports for Water and Electric FundsINFORMATION ITEM G-1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: JANUARY 22, 2024
SUBJECT: FISCAL YEAR 2023-24 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, 2023.
RECOMMENDATION:
Staff recommends that the Utility Board take the following action:
1)Receive and file Fiscal Year 2023-24 1st Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Water sales through the first quarter were 9.5% lower than through the first quarter of the prior
fiscal year, and billed amounts were 15.4% lower. The decrease in sales amounts is mainly due to
customers abiding by the drought water conservation measures implemented and the
hurricane/tropical storm of August 2023. The table below shows a 10-year trend of first quarter
sales, billings, and the number of billed accounts for the Water Utility:
Approved
Utility Board
01/22/2024
FY23-24 First Quarter Financial Report
January 22, 2023
Page 2 of 3
1st Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
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
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
22-23 1,978,035 $7,314,838 23,501
23-24 1,798,969 $6,186,038 23,476
First quarter revenues were higher, with the revenues at 31% of budget and expenditures lower at
22%, respectively, which yielded a net operating income of $2,826,177. First quarter operations
resulted in a $1.1M increase in cash reserves from fiscal year-end. The current cash reserve balance
is $22.1 million, which exceeds the Utility’s minimum reserve requirement target of $19.0 million.
The estimated debt coverage ratio is 2.77 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 11.4% lower than through the first quarter of the
prior fiscal year, and billed amounts were 1.0% lower. The decrease in sales and billed amounts is
mainly due to comparison to the much higher consumption from the extreme and long heatwave
during the summer of 2022. The table below shows a 10-year trend of first quarter sales, billings,
and the number of billed accounts for the Electric Utility:
1st Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
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
22-23 80,978,508 $14,034,810 17,244
23-24 71,701,538 $13,886,391 17,515
FY23-24 First Quarter Financial Report
January 22, 2023
Page 3 of 3
First quarter revenues were at 29% of budget and expenditures at 24%, respectively, which yielded
a net operating income of $3,274,052. First quarter operations resulted in a $2.3M increase in cash
reserves from fiscal year-end after funding $299K in capital improvements pursuant to the Capital
Improvement Program. The current cash reserve balance is $28.3 million, which exceeds the
Utility’s minimum reserve requirement target of $12.1 million.
Prepared by: Reviewed and Approved:
Danny Smith Tikan Singh
Utilities Admin & Finance Manager General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) 1st Quarter Water Utility Operating Budget Report FY 23-24
2) 1st Quarter Electric Utility Operating Budget Report FY 23-24