HomeMy WebLinkAboutF-1.1. Fiscal Year 2021-22 4th 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: NOVEMBER 28, 2022
SUBJECT: FISCAL YEAR 2021-22 FOURTH 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 June 30, 2022.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Fiscal Year 2021-22 4th Quarter Budget Reports for Water and Electric
funds.
ANALYSIS:
WATER
Sales of water through the fourth quarter were 3.7% lower than the fourth quarter of the prior fiscal year,
and billed amounts were 3.8% lower. The decrease in sales and billed amounts were due to increased
customer conservation due to state mandated water conservation requirements. The table below shows a
10-year trend of fourth quarter sales, billings, and number of billed accounts for the Water Utility:
Approved
Utility Board
11/28/2022
FY21-22 Fourth Quarter Financial Report
November 28, 2022
Page 2 of 3
4th Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
12-13 8,094,910 $18,043,742 23,302
13-14 8,020,459 $17,933,551 23,597
14-15 7,094,934 $17,209,924 23,871
15-16 6,215,491 $16,877,625 23,934
16-17 6,598,143 $17,698,854 24,156
17-18 7,095,830 $18,912,360 24,284
18-19 6,612,342 $20,517,490 24,453
19-20 6,407,970 $21,576,236 24,091
20-21 6,744,049 $22,581,128 23,426
21-22 6,487,930 $21,715,063 23,420
Fourth quarter revenues were lower with the revenues at 98% of budget and expenditures lower at 86%,
respectively, which yielded a net operating income of $6,625,137. Fourth quarter operations resulted in a
$2.8M decrease in cash reserves from fiscal year end, after funding $4.6M in capital improvements
pursuant to the Capital Improvement Program. The current cash reserve balance is $25.1 million, which
exceeds the Utility’s minimum reserve requirement target of $19.6 million. The estimated debt coverage
ratio is at 1.69 times the amount of debt service obligations, which is above the 1.25 bond covenant
requirement.
ELECTRIC
Sales of electricity through the fourth quarter were 1.7% lower than fourth quarter of the prior fiscal year,
and billed amounts were 8.8% higher. The table below shows a 10-year trend of fourth quarter sales,
billings, and number of billed accounts for the Electric Utility:
4th Quarter Electric Sales/Billings
FY kWh Sales Billings Billed Accounts
12-13 247,422,942 $36,270,465 15,749
13-14 250,280,276 $36,415,546 15,955
14-15 257,361,329 $38,763,711 16,226
15-16 253,655,020 $36,343,584 16,740
16-17 255,975,406 $36,843,301 16,555
17-18 252,892,628 $33,329,648 16,695
18-19 248,413,138 $36,005,653 16,854
19-20 242,611,536 $35,587,303 18,485
20-21 241,466,624 $35,337,972 17,013
21-22 237,344,466 $38,467,556 17,098
Fourth quarter revenues were higher with the revenues at 109% of budget and expenditures lower at 92%,
respectively, which yielded a net operating income of $8,409,156. Fourth quarter operations resulted in a
$2.4M increase in cash reserves from fiscal year end, after funding $1.2M in capital improvements
pursuant to the Capital Improvement Program. The current cash reserve balance is $27.7 million, which
FY21-22 Fourth Quarter Financial Report
November 28, 2022
Page 3 of 3
exceeds the Utility’s minimum reserve requirement target of $13.5 million. The estimated debt coverage
ratio is at 9.05 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) 4th Quarter Water Utility Operating Budget Report FY 21-22
2) 4th Quarter Electric Utility Operating Budget Report FY 21-22