HomeMy WebLinkAboutG-1.1. FY 2024-25 2nd Quarter Budget Reports for Water and Electric Funds_ApprovedINFORMATION ITEM G-1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: FEBRUARY 24, 2025
SUBJECT: FISCAL YEAR 2024-25 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, 2024.
RECOMMENDATION:
Staff recommends that the Utility Board take the following action:
1)Receive and file Fiscal Year 2024-25 2nd Quarter Budget Reports for Water and Electric
funds.
ANALYSIS:
WATER
Water sales through the second quarter were 6.2% higher than through the second quarter of the prior
fiscal year, and billed amounts were 23.9% 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 second quarter sales, billings, and the number of billed accounts for the Water Utility:
2nd Quarter Water Sales/Billings
FY CCF Sales Billings Billed Accounts
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
Approved
Utility Board
02/24/2025
FY24-25 Second Quarter Financial Report
February 24, 2025
Page 2 of 3
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
24-25 3,541,300 $15,187,285 23,563
Second quarter revenues were 56% of budget and expenditures 42%, respectively, yielding a net operating
income of $7,425,434. Second quarter operations resulted in a $3.9M increase in cash reserves from fiscal
year-end after funding $521K in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $23.2 million, which exceeds the Utility’s minimum reserve requirement
target of $19.0 million. The estimated debt coverage ratio is 4.79 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 1.4% higher than through the second quarter of the
prior fiscal year, and billed amounts were 6.3% 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 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
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
24-25 132,310,260 $26,677,521 17,552
Second quarter revenues were 53% of budget and expenditures 38%, respectively, yielding a net operating
income of $8,278,804. Second quarter operations resulted in a $5.0M increase in cash reserves from fiscal
year-end after funding $436K in capital improvements pursuant to the Capital Improvement Program. The
current cash reserve balance is $29.0 million, which exceeds the Utility’s minimum reserve requirement
target of $12.1 million.
FY24-25 Second Quarter Financial Report
February 24, 2025
Page 3 of 3
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 24-25
2) 2nd Quarter Electric Utility Operating Budget Report FY 24-25