HomeMy WebLinkAboutG-1.1. Fiscal Year 2023-24 2nd 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: FEBRUARY 26, 2024
SUBJECT: FISCAL YEAR 2023-24 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, 2023.
RECOMMENDATION:
Staff recommends that the Utility Board take the following action:
1)Receive and file Fiscal Year 2023-24 2nd Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Water sales through the second quarter were 3.7% lower than through the second quarter of the
prior fiscal year, and billed amounts were 4.7% lower. The decrease in sales amounts is mainly
due to customers abiding by the drought water conservation measures implemented. The table
below shows a 10-year trend of second quarter sales, billings, and the number of billed accounts
for the Water Utility:
Approved
Utility Board
02/26/2024
FY23-24 Second Quarter Financial Report
February 26, 2024
Page 2 of 3
2nd Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
14-15 4,097,618 $9,677,957 23,779
15-16 3,485,347 $8,360,920 23,857
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
21-22 3,635,410 $11,864,601 23,443
22-23 3,353,680 $12,792,522 23,447
23-24 3,332,983 $12,255,128 23,496
Second quarter revenues were higher, with the revenues at 58% of budget and expenditures lower
at 43%, respectively, which yielded a net operating income of $5,026,903. Second quarter
operations resulted in a $1.7M 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 2.46 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 5.4% lower than through the second quarter
of the prior fiscal year, and billed amounts were 5.2% higher. The decrease in sales amounts is
mainly due to the 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 second quarter
sales, billings, and the number of billed accounts for the Electric Utility:
2nd Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
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
21-22 129,491,214 $20,656,565 17,300
22-23 137,962,045 $23,825,301 17,380
23-24 130,443,427 $25,077,655 17,461
FY23-24 Second Quarter Financial Report
February 26, 2024
Page 3 of 3
Second quarter revenues were higher, with the revenues at 54% of budget and expenditures lower
at 47%, respectively, which yielded a net operating income of $4,770,335. Second quarter
operations resulted in a $1.0M increase in cash reserves from fiscal year-end after funding $606K
in capital improvements pursuant to the Capital Improvement Program. The current cash reserve
balance is $27.2 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) 2nd Quarter Water Utility Operating Budget Report FY 23-24
2) 2nd Quarter Electric Utility Operating Budget Report FY 23-24