HomeMy WebLinkAboutF-1.1. Fiscal Year 2022-23 3rd Quarter Budget Reports for Water and Electric FundsINFORMATION ITEM F-1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MAY 22, 2023
SUBJECT: FISCAL YEAR 2022-23 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, 2023.
RECOMMENDATION:
Staff recommends that the Utility Board take the following action:
1)Receive and file Fiscal Year 2022-23 3rd Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Sales of water through the third quarter were 10.0% lower than through the third quarter of the
prior fiscal year, and billed amounts were 5.6% higher. The decrease in sales amounts is mainly
due to customers abiding by the drought water conservation measures implemented in the current
year, along with approximately 31 inches of rain during the third quarter. The table below shows
a 10-year trend of third quarter sales, billings, and the number of billed accounts for the Water
Utility:
Approved
Utility Board
05/22/2023
FY22-23 Third Quarter Financial Report
May 22, 2023
Page 2 of 3
3rd Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
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
21-22 4,960,738 $16,541,402 23,436
22-23 4,461,781 $17,468,866 23,470
Third quarter revenues were lower with the revenues at 67% of budget and expenditures lower at
72%, respectively, which yielded a net operating income of $4,095,759. Third quarter operations
resulted in a $1.1M decrease in cash reserves from fiscal year end, after funding $225K in capital
improvements pursuant to the Capital Improvement Program. The current cash reserve balance is
$24.2 million, which exceeds the Utility’s minimum reserve requirement target of $19.6 million.
The estimated debt coverage ratio is 1.27 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 3.4% higher than through the third quarter of the
prior fiscal year, and billed amounts were 17.8% higher. The increase in sales and billed amounts
is mainly due to the heatwave of August 31 to September 9, with a peak consumption day on
September 7 and the adjusted PCA to cover projected changes in wholesale power costs. The table
below shows a 10-year trend of third quarter sales, billings, and the number of billed accounts for
the Electric Utility:
3rd Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
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
21-22 183,034,380 $29,506,234 17,294
22-23 189,352,860 $34,769,646 17,462
FY22-23 Third Quarter Financial Report
May 22, 2023
Page 3 of 3
Third quarter revenues were at 70% of budget and expenditures at 66%, respectively, which
yielded a net operating income of $3,524,916. Third quarter operations resulted in a $1.1M
decrease in cash reserves from fiscal year end, after funding $472K in capital improvements
pursuant to the Capital Improvement Program. The current cash reserve balance is $22.4 million,
which exceeds the Utility’s minimum reserve requirement target of $13.5 million. The estimated
debt coverage ratio is 4.97 times the amount of debt service obligations, which is above the 1.10
bond covenant requirement.
Prepared by: Reviewed and Approved:
Danny Smith Tikan Singh
Utilities Admin & Finance Manager General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager
Attachments:
1) 3rd Quarter Water Utility Operating Budget Report FY 22-23
2) 3rd Quarter Electric Utility Operating Budget Report FY 22-23