HomeMy WebLinkAboutG-1.1. Fiscal Year 2024-25 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 27, 2025
SUBJECT: FISCAL YEAR 2024-25 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, 2024.
RECOMMENDATION:
Staff recommends that the Utility Board take the following action:
1)Receive and file Fiscal Year 2024-25 1st Quarter Budget Reports for Water and
Electric funds.
ANALYSIS:
WATER
Water sales through the first quarter were 8.9% higher than through the first quarter of the prior
fiscal year, and billed amounts were 33.6% higher. The increase in sales amounts is mainly due to
higher consumption from having less rain this year than the previous year. 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
01/27/2025
FY24-25 First Quarter Financial Report
January 27, 2025
Page 2 of 3
1st Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
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
24-25 1,960,581 $8,268,253 23,596
First quarter revenues were 29% of budget and expenditures 21%, respectively, yielding a net
operating income of $3,727,377. First quarter operations resulted in a $1.8M increase in cash
reserves from fiscal year-end after funding $475K in capital improvements pursuant to the Capital
Improvement Program. The current cash reserve balance is $21.0 million, which exceeds the
Utility’s minimum reserve requirement target of $19.0 million. The estimated debt coverage ratio
is 4.81 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 4.6% higher than through the first quarter of the
prior fiscal year, and billed amounts were 10.5% higher. The increase in sales amounts is mainly
due to the higher average temperature during this September compared to September of last year.
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
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
24-25 75,067,194 $15,344,658 17,668
FY24-25 First Quarter Financial Report
January 27, 2025
Page 3 of 3
First quarter revenues were 29% of budget and expenditures 19%, respectively, yielding a net
operating income of $6,195,695. First quarter operations resulted in a $4.5M increase in cash
reserves from fiscal year-end after funding $292K in capital improvements pursuant to the Capital
Improvement Program. The current cash reserve balance is $28.5 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 24-25
2) 1st Quarter Electric Utility Operating Budget Report FY 24-25