HomeMy WebLinkAbout15 Mid-Year Financial UpdateTRUCKEE DONNERO
Public Utility District
TO: Board of Directors
AGENDA ITEM # 15
FROM: Michael Salmon, Chief Financial Officer
SUBJECT: Mid -Year Financial Update - 2020
APPROVED BY
Michael Salmon, Chief Financial Officer
RECOMMENDATION:
Accept and file the 2020 mid -year financial update.
INFORMATION:
District Code requires a semi-annual review of the budgeted revenues and expenditures as
compared to the year-to-date actual revenues and expenditures.
General Overview:
Revenues, expenses, and capital projects are each running favorable to budget as of mid-
year and each are forecasted for the year to be favorable to budget.
The Covid-19 pandemic caused a slight dip in demand in March/April time -frame and
thereafter to date, has been more of boost in demands overall for the District's services.
Delinquent balances have increased since pandemic start, however, we do not forecast a
material impact on the bottom line. Our customer relief program for residential customers
has assisted over 200 customers with in total more than $70,000 in account credit aid.
The following commentary is based primarily on the Budget Report, which is page 2 of
Attachment A — Financial Reporting Package (FRP) June 2020. This Budget Report is the
consistent format and budget format presented in past and for 2020/2021 budget cycle.
The Budget Report is a non-GaaP hybrid of income statement and cash flows, providing a
good overview of sources and uses of funds. The remainder of FRP includes more
traditional summary and detailed Income Statement and Statement of Financial Positions
for Electric, Water, and Combined.
For this agenda item at the board meeting, a summary of key financial information will be
presented, consistent with the following narrative commentary report.
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Revenues:
YTD June 2020 operating revenues of $20.95M are 51 % of annual budget which equates
to favorable $594,000. Annual forecast is favorable $1.OM to budget in operating
revenues.
Electric residential sales are up 7% to budget and commercial sales are flat to budget.
Electric revenues are forecasted to be 4% or $1 M favorable to budget for the year, with
—1 % higher usage volume.
Water sales are pacing below straight-line spread budget by 3% or $400,000. Consistent
with prior years trend, water revenue is forecasted to exceed budget for 2nd half of year.
Water revenues are forecasted to be at budget for 2020. Billed gallons is projected to be
higher than last year, due in part to meter MTU replacements project this summer.
Operating Expenses:
YTD June 2020 operating expenses of $15.5M are 46% of annual budgetwhich equates to
favorable $1.2M. Annual forecast is favorable $750,000 to budget in operating expenses,
and includes the 9/2/2020 agenda item recommended for board approval additional
$500,000 for wildfire defensible space efforts.
Electric expense savings to budget through June are 3% or $800,000 driven primarily by
purchased power favorable to budget 5% or $640,000. This purchased power savings is
driven primarily by an —8% cost decrease per KWH compared to prior year/budget. With
board approval, electric will spend $500,000 over budget in wildfire defensible space.
Including this addition, Electric expenses are forecasted to be 1 % or $550,000 favorable to
budget for the year.
Water expense savings to budget through June are 4% or $400,000, driven in part due to
timing spread between budget and actual expenses over the year. Water expenses are
forecasted to be 1 % or $200,000 favorable to budget for the year.
Capital Expenditures:
YTD June 2020 capital expenditures of $3.1 M are 34% of annual budget, under -running
due primarily to timing of projects for the year. Annual forecast is $1.OM to $1.5M under
budget in expenditures for the year, due to certain projects deferred to future years. The
deferrals due to resources (time mainly) to properly plan and execute projects, as well as,
other projects delayed due to pandemic impacts capital conservation.
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FISCAL IMPACT:
This financial review of actual to budget activity and year end projections for FY2020 serve
as Board's review of the District's current financial performance.
ATTACHMENT:
A — Financial Reporting Package — Summary and Detailed — Budget Report, Income
Statements and Statements of Financial Position
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