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Home My WebLink About10 Attachment 1, Key Financial Information MetricsTDPUD - KEY FINANCIAL INFORMATION updated 4/27/2022 Source - Audited Combined Financial Statements preliminary, audit in -progress) Electric Water TDPUD Comments audit Item Year 1 $ thousands I % CAGR 2021 76,200 65,852 142,053 2020 72,117 6% 63,312 4% 135,428 5% Net Position similar to retained earnings or Net Position 2019 67,286 6% 63,045 2% 130,331 4% net worth. Revenues increase, expenses 2015 48,343 8% 61,375 1% 109,717 4% decrease, capital expenditures no impact. 2010 43,555 5% 65,306 0.1 % 108,862 2% Trends: E improving, W stagnant, declined 2021 61,493 71,390 132,883 Net Capital Assets is comprised of gross Net Capital 2020 59,493 3% 72,539 -2% 132,032 1% fixed assets (capital expenditures) less Assets 2019 58,756 2% 75,056 -2% 133,812 0% accumulated depreciation (accounts for 2015 47,079 5% 75,338 -1% 122,417 1% deterioration over time of assets) plus 2010 40,084 4% 81,988 -1% 122,072 1% construction work in progress. Trends: E increasing, W declining 2021 552 11,022 11,574 Long Term Debt is the principal balance of Lon Term 2020 1,603 -66% 16,579 -34% 18,182 -36% debt (similar to a mortgage balance), used Debt 2019 2,604 -54% 18,846 -24% 21,449 -27% to leverage large long-term capital invest- 2015 5,662 -32% 27,551 -14% 33,214 -16% ments over period of benefit. 2010 9,658 -23% 38,813 -11 % 48,471 -12% Trends: E decreasing and nominal, W decreasing 4/27/2022 1:15 PM Financial Infov2021.x1s I Key Financial Amounts Attachment 1 - Key Financial Info/Metrics Draft- Page 1 of 9 1of5 Source - Audited Combined Financial Statements preliminary, audit Electric Water TDPUD audit in -progress) Item Year 1 $ thousands I % CAGR 2021 29,890 15,419 45,310 Operating 2020 29,471 1% 14,007 10% 43,478 4% Revenues 2019 27,808 4% 13,207 8% 41,015 5% (before Eliminations) 2015 23,662 4% 10,789 6% 34,451 5% 2010 23,621 2.2% 11,568 2.6% 35,189 2.3% 2021 13,560 13,560 Purchased 2020 11,286 20% 11,286 20% Power 2019 10,755 12% 10,755 12% 2015 11,348 3% 11,348 3% 2010 10,646 2% 10,646 2% 2021 7,947 5,790 13,737 O&M Costs 2020 6,749 18% 5,821 -1% 12,570 9% (before 2019 5,197 24% 5,779 0% 10,976 12% eliminations) 2015 3,467 15% 4,422 5% 7,889 10% 2010 3,348 8% 4,391 3% 7,739 5% Comments Operating Revenues includes residential, commercial, standby, backflow, pole contacts, and cap&trade income. Excludes investment income, connection/fac fees. Revenues are influenced by price changes, customer usage and customer growth. Note the 11 yr CAGRs Purchased Power is the District's cost for wholesale power distriubtion to the customers. Cost is influenced by a large number of factors, inlcuding source mix, KW demand, KwH usage, and market prices. Operation and Maintenance (O&M) costs are the core operational annual costs to provide service to customers. Trends. E- increase trend due to wildfire mitigation costs and in 2021 the storm damage state of emergency in Dec'2021 and less labor costs to capital projects. Both E&W have had rate of pay increases greater than 3% and regulatory costs continue to escalate. 4/27/2022 1:15 PM Financial Infov2021.x1s i Key Financial Amounts Attachment 1 - Key Financial Info/Metrics Draft- Page 2 of 9 2of5 Source - Audited Combined Financial Statements preliminary, audit in -progress) Electric Water TDPUD Comments audit Item Year 1 $ thousands I % CAGR Customer 2021 5,212 3,947 9,159 Costs for supporting customers and O&M Service, 2020 4,976 5% 3,777 4% 8,753 5% efforts. Trends: rate of pay changes and turnover Admin, 2019 5,141 1 % 3,773 2% 8,914 1 % influence y2y General 2015 4,129 4% 3,039 4% 7,168 4% 2010 3,860 3% 2,338 5% 6,198 4% 2021 3,377 4,541 7,918 Depreciation Expense is a non -cash cost Depreciation 2020 3,013 12% 4,962 -8% 7,975 -1 % charge to recognize the aging/deterioration Expense p 2019 2,894 8% 4,527 0% 7,420 3% of capital assets over their respective 2015 2,376 6% 3,585 4% 5,961 5% useful lives. 2010 1,610 7% 3,139 3% 4,749 5% Cash Funds 2021 26,850 10,498 37,348 Cash & Investements (cash equivalents) including 2020 26,132 3% 11,707 -10% 37,839 -1% funds in the banks, ie Reserves. Includes Non Current 2019 23,193 8% 10,478 0% 33,670 5% Undesignated, Designated, and Restricted. Restriced 2015 12,929 13% 11,563 -2% 24,492 7% Monthly Treasurer's Report details balances. 2010 13,460 6% 14,298 -3% 27,758 3% Utility Plant 2021 91,251 128,650 219,901 Gross Fixed Assets reflects the cost of (Gross Fixed 2020 86,609 0 5/0 126,085 0 2/0 212,694 o 3/capital expenditures that remain in-service. Assets) & 2019 81,893 6% 124,381 2% 206,274 3% Capex spend increases, disposals decrease. Land 2015 64,620 6% 110,995 2% 175,615 4% 2010 50,925 5% 95,637 3% 146,563 4% 4/27/2022 1:15 PM Financial Infov2021.xIs I Key Financial Amounts Attachment 1 - Key Financial Info/Metrics Draft- Page 3 of 9 3of5 Source - Audited Combined Financial Statements preliminary, audit Electric Water TDPUD audit in -progress) Item Year 1 $ thousands I % CAGR Comments 2021 33,395 59,356 92,751 Accumulated Depreciation is the sum of all Accumulated 2020 30,583 9% 54,665 9% 85,247 9% years Depreciation Expense. Reflects the Depreciation p 2019 27,996 9% 50,579 8% 78,576 9% financial amount of aging of Gross Fixed 2015 21,733 7% 36,310 9% 58,042 8% Assets capital investment in plant. 2010 15,482 7% 22,498 9% 37,980 8% 2021 3,637 2,096 5,733 Construction Work in Progress (CWIP) 2020 3,466 5% 1,118 87% 4,585 25% represents active capital projects which are CWIP 2019 4,860 -13% 1,254 29% 6,114 -3% not ready to be placed in-service. CWIP 2015 4,191 -2% 653 21% 4,844 3% dollars move to Gross Fixed Assets when 2010 4,640 -2% 8,848 -12% 13,489 -7% placed in-service; and then depreciation starts. from Statement of Cash Flows Capital 2021 3,713 2,655 6,367 Capital expenditures for the respective year. Expenditures 2020 3,755 0 -1 % 2,554 0 4/0 6,308 o 1 /Different from GFA change, as GFA changes for utility2019 7,832 -31% 1,757 23% 9,589 -19% for disposals and CWIP in-service additions. plant p 2015 5,934 -8% 3,081 -2% 9,015 -6% 2010 2,663 3% 6,062 -7% 8,725 -3% Debt Service 2021 680 6,489 7,169 Debt Service is the combined cash flow (principal & 2020 648 5% 3,243 100% 3,891 84% expenditure for payment of long-term debt. interest 2019 660 1% 3,168 43% 3,828 37% Includes Principal and Interest amounts. payments) 2015 904 -5% 5,370 3% 6,274 2% The Principal portion reduces LTD liability. 2010 3,513 -14% 3,325 6% 6,838 0% The Interest portion is annual interest expense. E incldues credit for W on POBs, W inlcudes POB portion 2021 Water includes $3.4 million SRF loan early payoff (DS $3.1 m excluding) 4/27/2022 1:15 PM Financial Infov2021.xIs I Key Financial Amounts Attachment 1 - Key Financial Info/Metrics Draft- Page 4 of 9 4of5 Source - Audited Combined Financial Statements preliminary, audit r1lectric Water TDPUD audit in -progress) Item Year 1 $ thousands I % CAGR 2021 4,610 3,074 7,684 Net Pension 2020 8,414 -45% 5,609 -45% 14,023 -45% Liability2019 7,724 -23% 5,149 -23% 12,873 -23% 2015 4,808 -1 % 3,205 -1 % 8,013 -1 2014 3,727 3% 2,484 3% 6,211 3% 2010 not available, 2014 1st year available (7yr CAGRs) 2021 was influenced heavily by CaIPERS investment returns for FYE 6/30/2021, which lowered NPL, however related, the Deferred Inflows (DI) for Pension increased from $537k in 2020 to $7.197 million in 2021. IE for accounting treatment the majority of the investment returns was deferred and is amortized over time per pension actuarial calculations The Net Pension (NPL+DI-DO) increased $535k/4.6% from 2020 $11.6m to 2021 $12.2m. Comments Net Pension Liability reflects the long-term liability for pension benefits of both current and retired employees. Net is the total liability less plan assets. Trend - escalating at much greater than inflation rate, Classic, not PEPRA driven. Pension Obligation Bonds (POBs) as a potential financing of pension's Unfunded Actuarial Liability (UAL) is currently on -hold due to impact of note to left, as well as, the uptick in market interest rates impact on POBs NPV impact on overall liability. 4/27/2022 1:15 PM Financial Infov2021.x1s I Key Financial Amounts Attachment 1 - Key Financial Info/Metrics Draft- Page 5 of 9 5of5 TDPUD - KEY FINANCIAL CALCULATIONS 2021 Preliminary- Combined not audited Electric Water TDPUD Metric Year I Metric varies I % CAGR 2021 9.9 13.1 11.7 Age of Plant 2020 10.2 -3% 11.0 19% 10.7 10% (Years) 2019 9.7 1% 11.2 8% 10.6 5% 2015 9.1 1% 10.1 4% 9.7 3% 2010 9.6 0% 7.2 6% 8.0 4% Accumulated Depreciation / Depreciation Expense Plant 2021 18.2 15.7 16.8 Remaining 2020 19.7 -8% 14.6 8% 16.6 1% Useful Life 2019 20.3 -5% 16.6 -3% 18.0 -4% (Years) 2015 19.8 -1% 21.0 -5% 20.5 -3% 2010 24.9 -3% 26.1 -5% 25.7 -4% Net Capital Assets / Depreciation Expense 2021 35% 45% 41 % Plant Life 2020 34% 4% 43% 6% 39% 5% Cycle Ratio 2019 y 32% 4% 40% 6% 37% 5% 2015 32% 2% 33% 6% 32% 4% 2010 28% 2% 22% 7% 24% 5% Age of Plant / (age of plant + remaining useful life) Lower life cycle generally equates to lower investment needs. A life cyle % >45% generally indicates elevated investment needs. Source: Fitch Ratings - Public Finance - US Water and Sewer Rating Criteria (March 2021) 2021 1.10 0.58 0.80 Capital 2020 1.25 -12% 0.51 14% 0.79 2% Expenditures to 2019 Depreciation 2.71 -36% 0.39 23/0 1.29 - 0 21/ Expense Ratio 2015 2.50 -13% 0.86 -6% 1.51 -10% 2010 1.65 -4% 1.93 -10% 1.84 -7% Capex / DeprExp is a one-year measure of capital investment compared to capital aging updated 4/27/2022 Comments Age of Plant is a financial estimate of plant age in years. Plant Remaining Useful Life is a financial estimate of plant's non -depreciated life in years. Life Cycle Ratio is a financial ratio used to benchmark the capital investment need of the utility. Trend - Water is approaching Fitch Rating threshold of >45%'elevated' level. A one year comparision of re -investment in capital versus depreciation of capital. Generally, depreciation expense relatively stable y2y, whereas, Capex spend can vary widely y2y. 4/27/2022 1:19 PM Financial Info v2021KPI Attachment 1 - Key Financial Info/Metrics Draft- Page 6 of 9 1of4 TDPUD - KEY FINANCIAL CALCULATIONS 2021 Preliminary- Combined not audited Electric Water TDPUD Metric Year I Metric varies I % CAGR updated 4/27/2022 Comments 2021 1 % 17% 8% Debt to Equity Ratio is a common financial Debt to 2020 2% -67% 26% -36% 13% -39% metric of debt level/leverage. 2019 4% -570 30% -25% 16%-30% Trend - E has nominal debt, W has moderate Equity Ratio 2015 12 -37% /o 45 /o -15% 30% -20% and is trending down with existing debt. 2010 22% -27% 59% -11 % 45% -14% LTD / Net Position 2021 1 % 15% 9% Debt to Capital Assets Ratio is a 2nd common Debt to Net 2020 3% -67% 23% -32% 14% -37% financial metric of debt level/leverage. Capital 2019 4% -55% 25% -22% 16% -26% Assets 2015 12% -35% 37% -13% 27% -17% 2010 24% -26% 47% -10% 40% -13% LTD / Net Capital Assets 2021 2% 40% (S) 16% (S) Water 2021 is 19% when, excluding SRF loan early payoff (see Debt Service 2020 2% 3% 22% 83% 9% 77% Note) to Operating 2019 2%-2% 23% 33% 9% 30% Provides finanical mesure of the % of OpRev Revenues* 2015 4% -8% 46% -2% 18% -2% committed to fixed cost of debt service. 2010 15% -16% 27% 4% 19% -2% District Code - Debt Goal 'no more than 25% of general fund revenues committted to debt service' < Water and Total OPREV adj for for DLAD Assessment * Operating Revenues plus $801 K for DLAD Assessment for Water and Total column calculations. 2021 includes $3.4m in Water Debt Service early payoff of SRF Loan. 4/27/2022 1:19 PM Financial Info v2021KPI Attachment 1 - Key Financial Info/Metrics Draft- Page 7 of 9 2of4 TDPUD - KEY FINANCIAL CALCULATIONS 2021 Preliminary- Combined not audited Electric Water TDPUD Metric Year I Metric varies I % CAGR DS* to 2021 6,793 (1,833) 4,960 OpRev at 2020 6,720 1,060 7,780 25% 2019 6,292 4% 935 #NUM! 7,227 -17% SPREAD 2015 5,011 5% (1,872) 0% 3,140 8% 2010 2,392 11 % 367 11 % 2,760 11 % $Thousands Debt Service SPREAD - 25% of Operating Revenues debt goal cap minus DS Actual. Metric Reference - -$1.5M in Debt @ 3.5% Interest Rate with 20yr Term equates to --$100K in annual Debt Service. For example a $600K DS Spread - equates to -$9M in Debt Principal (@3.5%, 20yr term) " DS excludes $801 K for Water and Total column calculations, as this DS covered via DLAD Assessment. 2021 4.66 1.00 see note> 1.35 Debt Service 2020 9.98 -53% 1.61 -38% 3.00 -55% Coverage 2019 10.18 -32% 1.41 -16% 2.92 -32% Ratio 2015 5.22 -2% 0.77 4% 1.41 -1% 2010 1.64 10% 1.70 -5% 1.67 -2% Above is basic coverage ratio calculation (and includes DLAD Debt Service): f $801 K DLAD Assessment + Op Revenues minus Op Expenses (excluding Depreciation Expense)) / Debt Service The Water COP bonds have a specific, more granular calculation. The Water COP bonds have a miniumum 1.25 coverage ratio requirement updated 4/27/2022 Comments W 2021 is postive $1,830 exluding (S) above The dollar spread between OpRev x 25% and Debt Service. Provides a financial amount of DS capacity compared to DS Goal Maximum in District Code. < Water and Total DS adj down for for DLAD Assessment 2023 B Op Rev-W $ 17,784 x 25% Limit-W $ 4,446 DS existing Debt-W $ 1,034 DS'23 new capacity-W $ 3,412 W 2021 is 2.10 exluding (S) above DS Coverage Ratio is a financial metric used to benchmark how much net revenues (rev - costs) is available to pay Debt Service. Higher % reflects less risk to debt holders. < Water and Total OPREV adj for for DLAD Assessment 4/27/2022 1:19 PM Financial Info v2021KPI Attachment 1 - Key Financial Info/Metrics Draft- Page 8 of 9 3of4 TDPUD - KEY FINANCIAL CALCULATIONS 2021 Preliminary- Combined not audited Electric Water TDPUD Metric Year I Metric varies I % CAGR Average of E&W 2021 14,550 13,476 14,013 December- 2020 14,268 2.0% 13,325 1.1% 13,797 1.6% Number of 2019 14,111 1.5% 13,101 1.4% 13,606 1% Customers 2015 13,431 1.3% 12,772 0.9% 13,102 1% 2010 13,145 0.9% 12,573 0.6% 12,859 1% Operating2021 $ 171 $ 95 $ 269 Revenue per 2020 $ 172 -1% $ 88 9% $ 263 3% Customer / 2019 $ 164 2% $ 84 7% $ 251 4% Month 2015 $ 147 3% $ 70 5% $ 219 4% 2010 $ 150 1% $ 77 2% $ 228 2% Includes E Cap&Trade revenues, pole contacts, standby fees, backflow testing fees, and miscellaneous other revenues, not just standard monthly customer billings. updated 4/27/2022 Comments This is # of customers at year-end December. It is not the average # of customers for year. A financial metric of operating revenues per customer per month, with prior years to provide context. < 11yr CAGR is a low % for both E & W 4/27/2022 1:19 PM Financial Info v2021KPI Attachment 1 - Key Financial Info/Metrics Draft- Page 9 of 9 4of4