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HomeMy WebLinkAbout#19 Budget performance review FY20 AGENDA ITEM #19 Public Utility District m MEETING DATE: April 3, 2024 TO: Board of Directors FROM: Michael Salmon, Chief Financial Officer SUBJECT: Considering Acceptance of the District's Fiscal Year End 2023 Budget Performance Review and Fund Transfers APPROVED BY: Z_ Brian C. Wright, General Manager RECOMMENDATION: A. Accept this report of Budget Performance for 2023 end of year, which includes variances identified since the adoption of the budget for 2023. B. Consistent with Budget FY24 Financial Master Plan expectations, authorize internal book fund transfers as of 12/31/2023 as follows: 1. Electric Utility - $475,763 from General Fund Operating Reserve to Rate Reserve, for CVPIA litigation settlement proceeds received in 2023 2. Water Utility - $1,985,000 from General Fund Operating Reserve to Capital Reserve, for capital expenditure timing variances between years in 2023 BACKGROUND: District code requires a semiannual review of the budgeted revenues and expenditures compared to actual revenues and expenditures. Staff reviewed the mid-year FY23 budget to actual financial performance at the regular board meeting on August 2, 2023. The budget to actual report is a consolidated report of actual activity for revenues, operational expenses, and capital improvement projects funded by rates and reserves. The budget reporting excludes certain non-budgeted items, non-cash and cash flow items, such as depreciation, amortization, and revenue and expenses associated with contributed capital projects. This staff report is a year-end review of the full-year financial results as of December 31, 2023. This is the fourth of four reviews for the FY22 and FY23 Board approved Budget. Page 1 of 8 Page 109 of 159 ANALYSIS AND BODY: While the FY23 audit is currently in progress, the District's preliminary FY23 year-end financial summary results are included in Attachment 1 and Attachment 2, Electric and Water respectively. Attachment 3 provides a report on reserves, and Attachment 4 is a report of Facility Fees. District-wide notable expense items, impacting all operating cost centers • Rate of Pay Variance (R) - The rate of pay for personnel increases in 2022 and 2023 were 5.0% and 5.0% respectively, whereas, the approved budget factored increases of 4.5% and 3.0% respectively. This equates to a variance in the budget of 2.4% in 2023 on personnel rates of pay and labor overhead. This rate of pay variance equates to an operating expense variance to the budget of $228,000 for Electric Utility, $176,000 for Water Utility and $404,000 combined for the District. • Transportation Overhead Variance (T) - The District's transportation fleet operating costs of$1.6M in 2023 are $349k or 28% over budget. Notable unfavorable variance items were repairs and maintenance over $125k or 100%, fleet rentals of $105k (not budgeted), and fuel costs over $73k or 59%. The extreme winter 22/23 had an impact on repair costs, inflation on fuel costs, and fleet rentals due to the delay in delivery of fleet orders, as well as the backlog delay in specialty vehicle service repairs. Transportation overhead cost allocation is based on where payroll hours are charged. This (T) variance further impacted the Electric Utility's operating expenses, as fewer hours were charged to capital projects, resulting in more hours charged to operating expenses. These transportation overhead variance items noted equate to an operating expense variance to budget of$261,000 for Electric Utility, $157,000 for Water Utility and $418,000 combined for the District. Electric Utility Attachment 1 is the preliminary Budget to Actual Comparison report for the Electric Utility for FY23. Revenues of$35.5M exceeded budget expectations by $1.612M or 5%. Energy demand continued to increase in the District, compared to the budget last year. Compared to 2022, the average billed kWh per day was up 2.3%, with the number of accounts billed for the year up 0.6%, and the average kWh per account per month up 1.8% for the year. Per account kWh usage in 2023 compared to 2022 was up substantially in Q1 and Q2, 9% and 8% respectively, due to the extreme weather conditions of winter 2022/2023; whereas, with mild weather in Q3 and Q4 of 2023, per account kWh usage was down to 2022 in both quarters, 2% and 9% respectively. Purchased power expense of$14.1 M was over budget by $0.86M or 1%. The $14.1 M includes a $475,763 CVPIA litigation settlement funds credit. Excluding this credit, purchase power expense was $14.5M, over budget by $562K or 4.0%. The average Page 2 of 8 Page 110 of 159 cost per MW of $84.17 was 3.5% over budget, driving $0.489M of the variance, and the volume of MW purchased was 0.5% over budget, driving $0.073M of the variance. Staff has a separate agenda item detailing this variance and a recommended rate reserve transfer for board consideration. Operating Expenses of$15.1 M were net $1.3M or 10% over budget expectations, and the key variances summarized by the cost center are as follows: • Board of Directors - $2,000 / 0% over budget: • General Management - $57,000 / 4% over budget: $28k over due to rate of pay variance (R), $37k over in transportation overhead (T), and $8k net under in various other categories. • Administrative Services - $40,000 / 3% over budget; $27k over due to rate of pay variance (R), $39k insurance over budget (renewal cost increases), and $26k net under budget for all other variances. • Conservation - $267,000 / 29% under budget: variance driven primarily by delay in commercial program and new programs due to resource constraints. Residential programs were generally on budget. • IT/GIS - $33,000 / 2% under budget: $18k over due to rate of pay variance (R), $51 k net in various expense savings. • Building Maintenance - $89,000 / 12% over budget; $12k over due to rate of pay variance (R), $35k in snow removal labor incremental to cost center, $8k over in utilities, $31 k in repairs (primarily asphalt repairs). The winter 22/23 had these notable impacts on these operating costs. Electric Operations - $1,435,000 / 20% over budget: $1,017,000 or 23% over budget in wages and overhead • $1,277,000 over due to less labor charged to capital projects than anticipated. • $219,000 over due to transportation overhead (T) • $98,000 over due to rate of pay variance (R) • ($577,000) under budget due to net position vacancies in management and line positions, effectively down approximately 2.0 FTEs for 2023 $418,000 or 16% over budget in supplies/services (vendors) expenses. Notables include: • $506,000 over in vegetation management/defensible space (total expense of$2.1 M) • ($88,000) net under budget for all other categories The Electric Utility FY23 Capital Expenditures of $4.5M included: distribution replacement and improvement projects $1.15M, pioneer trail pipeline electric portion $879K, pole replacements $840K, the Northwoods Rebuild project $287K, ELF fuses Page 3 of 8 Page 111 of 159 project $355K, undergrounding projects $341 K, and fleet purchases $64K. Capital spend was $2.1 M under budget, with the most notable variance is the SCADA Reliability Improvements project with a budgeted spend of $1.6M, with actual $0, and battery storage project budget of $250k with actual $0. Both of these projects were delayed due primarily to project engineering resources and are currently in the planning phase. Supply chain challenges continue to impact vehicle purchase deliveries. Other Cash Flow In (Out) net of$1.7M was $2.5M or 294% favorable to the budget; variance details: • Investment Income for the operating fund of $186k was 590% or $159k greater than the budget due to 2023 interest rate market conditions. • Transfer to Vehicle Reserves of $786,000 was consistent with the budget. • Transfer to Rate Reserves of $210,000 was consistent with the budget. • Transfer from Rate Reserves of $2,360,000 was approved by the Board in April 2023 to offset wholesale purchase power costs overruns primarily in Dec'22 and Jan'23 (cash flow impact in 2023) • Transfer in from AB32 funds for Horse Butte of $550,000 was consistent with the budget. • Debt Service of $431,000 was consistent with the budget. Electric Utility's Net Operations Funded Cash inflow for FY23 was $4.5M, favorable to the budget by $4.4M. Electric Reserve Balances: • In 2022, as budgeted, transfers from the General Fund were made to the Vehicle Reserve ($786,000) and to the Rate Reserve ($210,000), and transfers were made to the General Fund from AB32 Fund ($0.55M) and from Rate Reserve ($2.36m). There was no transfer in or out of the Capital Reserve, and no Electric 2022 COP debt project funds were expended in 2023 (or 2022), with the debt project funds balance of $6.7M forecast to be expended in 2024 and 2025. • The General Fund serves as the operating reserve, and the December 31, 2023, balance of $8.2M increased from last year end by $1.7M. The balance includes the $475,763 received from NCPA for CVPIA litigation settlement. As noted during the budget process for FY24 & FY25 in the fall of 2023, the CVPIA funds were forecasted to be transferred to the Rate Reserve. With 2023 now complete, with nominal price volatility in Q2-Q4 of 2023, staff recommends the transfer to Rate Reserve of $475,763 be formally approved by the board and completed. This will be consistent with Budget FY24 & FY25 and Financial Master Plan (FMP) expectations, and is included in the Recommendation for this agenda item. With approval, the post-transfer, the 12/21/2023 operating reserve balance will be $7.78M and within 1% of the FMP estimate. Page 4 of 8 Page 112 of 159 o The Rate Reserve as of December 31, 2023 balance of$4.8M is $470K or 9% below FMP estimate, however, post-transfer recommended above, the balance would be at budget/FMP expectations. o The Capital Reserve as of December 31, 2023 balance of $10.7M is $880K or 8% below FMP estimate, due to the timing of capital expenditures between years. o The Vehicle Reserve as of December 31, 2023 balance of $1.5M is $75K or 5% over the FMP estimate, due to the timing of capital expenditures between years. o Refer to Attachment 3 Reserve Balances Report for further details. Water Utility Attachment 2 is the preliminary Budget to Actual Comparison report for the Water Utility for FY23. Revenues of $18.OM exceeded budget expectations by $248K or 1%. Account growth was 0.6% in 2023, total gallons billed per billing day were down 7.5% compared to 2022 (Residential gallons down 6%, Commercial gallons down 9%), and average gallons per billing day per account of 225 was down 8%. Operating Expenses for the Water Utility of$12.4M were over budget by $801,000 or 7%. The key variances are summarized by cost center as follows: • Board of Directors - $37,000 / 16% under budget: the strategic expenditures had less impact on Water than Electric than budget expectation. • General Management - $61,000 / 4% over budget: $23k over due to rate of pay variance (R), $37k over in transportation overhead (T), and $1 k net over in various other categories. • Administrative Services - $50,000 / 3% over budget; $27k over due to rate of pay variance (R), $37k insurance over budget (renewal cost increases), and $14k net under budget for all other variances. • Conservation - $67,000 / 68% under budget; primarily due to delay of HQ modernization delaying conservation garden project programs • IT/GIS - $84,000 / 10% over budget: $18k over due to rate of pay variance (R), $150k over in labor/overhead due to less labor charged to capital projects impacting operating expense, offset by $84k net in various expense savings. • Interdepartmental Rent - $0 / 0% on budget at $572,000 for 2023 - under in depreciation expense, over in building maintenance costs (previously discussed in the Electric section above) Water Operations - $710,000 / 10% over budget; with the following notable variances: $136,000 / 3% over in payroll and related overheads • $96,000 over due to rate of pay variance (R) $109,000 over in transportation overhead (T) Page 5 of 8 Page 113 of 159 • ($69,000) savings due vacancies and other variables $574,000 / 23% over in materials, supplies and services (vendor costs) • $212,000 over in asphalt repairs - two years (2021 & 2023) of water share of Town of Truckee work invoiced in 2023, not budgeted • $60,000 over in asphalt repairs, driven by inflation and winter 22/23 damage • $64,000 over in water quality treatment and analysis (regulatory driven) • $55,000 for generators service contract, not budgeted • $44,000 over in water scada materials • $139,000 net over in all other vendor expenses to budget; materials and supplies due to inflation, supply chain fronting, and repairs Capital Expenditures of the Water Utility for FY23 invested $14.OM compared to a budget of$15.3M. The major focus for the Water Utility for Capital Expenditures in FY23 included: pipeline replacement $4.OM, Pioneer Trail Pipeline $3.2M, Pioneer Pump Station $2.4M, Well Rehabilitations $458K, Tank Rehabilitations $340K, fleet replacements $246K (backhoe & leak trailer), and new 6170 Tank of $2.4M (Rates $1.6M, Facility Fees $0.8M). The Water COP 2022 debt issuance provided $16M in project funds, with $4M expended in 2022 and $11 M in 2023, with a remaining balance of $1 M to be expended in 2024. • Other Cash Flow In (Out) net of ($1.5M) was $705K over budget; variance details: • Investment Income for the operating fund of $270k was $248k greater than budget due to 2023 market conditions. • Transfer to Vehicle Reserves of $247,000 was consistent with the budget. • Transfer in from Capital Reserve was $0, with budget of $960,000; the transfer was not necessary due to timing of capital expenditures between years and water's debt proceeds utilization timing, and anticipated in current FMP. • Donner Lake Surcharge funds use of $98,000 for 2006 COP Debt Service was consistent with the budget. • Debt Service of $1.99M was 0% favorable to budget. Water Net Operations Funded Cash inflow for FY23 was $2.36M, favorable to budget by $2.1 M. Water Reserve Balances • In 2023, as budgeted, a transfer from the General Fund was made to the Vehicle Reserve in the amount of$247,000, and there was no transfer to or from the Capital Reserve. Page 6 of 8 Page 114 of 159 • The Operating Reserve as of 12/31/2023 of $10.2M is above the policy target of 50% of budgeted operating expenses, which equates to $6.5M. As discussed in budget FY24 & FY25 process in fall and anticipated in FMP, there is a recommended transfer of$1,985,000 from operating reserve to capital reserve. Post this transfer, the operating reserve balance becomes $8.18M and is in alignment with current FMP expectations. • The Capital Reserve as of 12/31/2023 of $1.01 is substantially below the policy target of average annual capital expenditures, which is an average $8.8M over the next 10 years. This capital reserve shortfall in policy was addressed and resolved going forward in the Financial Master Plan included in the Budget 2024 & 2025 approval. In summary, the first priority is to strengthen the Operating Reserve balance and spending debt issuance proceeds, with a longer-term goal of increasing the capital reserve balance. The reserve balances are re-assessed as part of the budget cycle, and the District's 10-year financial Master Plan update later this calendar year. Following the transfer referenced in prior paragraph, the Capital Reserve balance will be $3.06M and $500k greater than FMP expectation; due to timing of capital expenditures between years.\ • The restricted Water 2022 Debt COP project funds of$15.9M have a year-end balance of $1.03M, after $11.1 M of funds expended on eligible planned projects in 2023. The remaining $1.03M will be expended in 2024. • Refer to Attachment 3 Reserve Balances Report for further details Facility The District establishes and collects facilities fees on new development for electric and water system improvements due to new developments in accordance with the Electric and Water Master Plans. Attachment 4 reports the status of the restricted Facilities Fees Fund for each utility respectively as of the end of FY23. The Electric Utility facilities fee collections in FY23 were $152K, compared to $173K in FY22. The Electric Utility had no expenditure for facilities fees in FY23 (as budgeted). The Water Utility facility fee collection in FY23 dropped 50% compared to 2022, with receipts of $456K compared to $909K in FY22. The District utilizes facilities fees for qualifying debt service for the Water Utility on an annual basis. In FY23, facilities fees of $359K were utilized for the 2006 Pipeline COP debt payment, as budgeted. Red Mountain Tank (RMT) portion of facility fees paid in 2023 was $16,351 and $760,000 in water facility fees were utilized for portion of new 6170 tank. The District is obligated to use facilities fees collected within a 5-year period, and is in compliance with this requirement. Refer to Attachment 4 Facilities Fees Report for further details GOALS AND OBJECTIVES: Page 7 of 8 Page 115 of 159 District Code 1 .05.020 Objectives: 1. Responsibly serve the public. 2. Provide a healthy and safe work environment for all District employees. 3. Provide reliable and high quality water supply and distribution system to meet current and future needs. 4. Provide reliable and high quality electric supply and distribution system to meet current and future needs. 5. Manage the District in an environmentally sound manner. 6. Manage the District in an effective, efficient and fiscally responsible manner. District Code 1 .05.030 Goals: 1. Manage for Financial Stability and Resiliency 2. Environmental Stewardship: Create a sustainable resilient environment for all our communities. 3. Engage with our customers and communities in a welcoming and transparent way to identify opportunities. 4. Take the best of private sector thinking to modernize the utility and add value to our communities. 5. Developing an inclusive culture drives organizational integration and success. FISCAL IMPACT: There is no direct fiscal impact associated with this item. ATTACHMENTS: 1. Electric FY23 2. Water FY23 revised 3. Reserve Balances FY23 4. Facilities Fees Recap FY23 Page 8 of 8 Page 116 of 159 Truckee Donner Public Utility District Attachment 1 - Electric Utility 2023 Budget to Actual Comparison Preliminary, subject to annual audit FY23 FY23 Variance ELECTRIC UTILITY Annual Annual Favorable Budget Actual (Unfavorable) % Operating Revenues Residential $ 18,756,168 $ 18,832,948 $ 76,780 0% Commercial 12,689,444 13,810,272 1,120,828 9% Interdept. Sales 1,489,959 1,405,021 (84,938) -6% Interdept. Rent 572,076 572,076 - 0% All Other 411,581 911,023 499,442 121% Total 33,919,228 35,531,340 1,612,112 5% Operating Expenses Board of Directors 386,344 387,884 (1,540) 0% General Management 1,533,653 1,590,585 (56,932) 4% Administrative Svcs. 1,476,195 1,516,196 (40,001) -3% Public Info. & Consrv. 915,162 647,873 267,289 29% Operations 7,105,456 8,540,081 (1,434,625) -20% IT/GIS 1,661,373 1,628,303 33,070 2% Building Maintenance 744,787 833,934 (89,147) -12% Total 13,822,970 15,144,857 (1,321,887) -10% Purchase Power Expense 13,982,000 14,068,454 (86,454) -1% Operating Revenue less Expenses 6,114,258 6,318,029 203,771 3% 18% 18% (0.002) 4% Other Cash Inflows (Outlfows) Investment Income 27,000 186,401 159,401 590% Transfers to Vehicle Reserve (786,000) (786,000) 0 0% Transfer to Capital Reserve - - 0 100% Transfer to Rate Reserve (210,000) (210,000) 0 100% Transfer in from Rate Reserve - 2,360,000 2,360,000 na Transfer in AB32 funds use for Horse Butte 550,000 550,000 0 100% Debt Service (441,491) (431,181) 10,310 -2% Total Other, net (860,491) 1,669,220 2,529,711 -294% Capital Expenditures funded by current FY Rate Revenues 5,204,773 3,532,145 1,672,628 32% Net Budget Activity, Operating $ 48,994 $ 4,455,105 $ 4,406,111 8993% Capital Expenditures Rates Funded (Operating Funded, listed above) $ 5,204,773 $ 3,532,145 $ 1,672,628 32% COPS 2022 Debt Project Funds - - - - Vehicle Reserve 763,164 64,119 699,045 92% Capital Reserve 650,000 889,675 (239,675) -37% Facility Fees Funded - - - - Total $ 6,617,937 $ 4,485,939 $ 2,131,998 32% Note: The above report is a Budget Report comparative, not an accounting/GAAP financial statement. The Budget Report excludes certain non-cash items (such as depreciation, investments market value unrealized gain/loss) and certain non-budgeted cash items (such as AB32 auction sales, connection fees, and the Operating Expenses exclude non-cash Pension and OPEB year-end adjustment credits and SBITA adjustment Credit. Page 117 of 159 Truckee Donner Public Utility District Attachment 2 -Water Utility 2023 Budget to Actual Comparison Revised 4/1/2024 Preliminary, subject to annual audit FY23 FY23 Variance WATER UTILITY Annual Annual Favorable Budget Actual (Unfavorable) % Operating Revenues Residential $ 15,382,349 $ 15,646,932 $ 264,583 2% Commercial 1,970,349 1,934,205 (36,144) -2% Standby& Fire Protection 102,647 99,738 (2,910) -3% Other 328,370 350,690 22,320 7% Total 17,783,715 18,031,563 247,848 1% Operating Expenses Board of Directors 226,350 189,059 37,291 16% General Management 1,412,007 1,473,253 (61,246) -4% Administrative Svcs. 1,450,006 1,500,092 (50,086) -3% Public Info. &Consrv. 98,645 31,595 67,050 68% Operations 6,952,558 7,662,748 (710,190) -10% IT/GIS 867,412 951,731 (84,319) -10% Interdepartmental Rent 572,076 572,076 0 0% Total 11,579,054 12,380,554 (801,500) -7% Operating Revenue less Expenses 6,204,661 5,651,009 (553,652) -9% Other Cash Inflows (Outlfows) Investment Income 22,000 270,155 248,155 1128% Transfers to Vehicle Reserve (247,000) (247,000) 0 0% Transfer in from Capital Reserve 960,000 - (960,000) 100% Donner Lake Surcharge for 2006 COP Debt 97,837 97,837 0 100% Facility Fund Reimbursement for Facility Fee Debt 358,672 358,672 0 0% Debt Service (1,993,917) (1,987,488) 6,429 0% Total Other, net (802,408) (1,507,824) (705,416) 88% Capital Expenditures funded by current FY Rate Revenues 5,152,893 1,780,151 3,372,742 65% Net Budget Activity, Operating $ 249,360 $ 2,363,034 $ 2,113,674 848% Capital Expenditures Rates Funded (Operating Funded, listed above) $ 5,152,893 $ 1,780,151 $ 3,372,742 65% COPs 2022 Debt Project Funds 8,965,975 11,085,823 (2,119,848) -24% Vehicle Reserve 157,720 245,553 (87,833) -56% Capital Reserve - - - - Facility Fees Funded 1,000,000 863,842 136,158 14% Total $ 15,276,588 $ 13,975,369 $ 1,301,219 9% Note: The above report is a Budget Report comparative, not an accounting/GAAP financial statement. The Budget Report excludes certain non-cash items (such as depreciation, investments market value unrealized gain/loss) and certain non-budgeted cash items (such as AB32 auction sales, connection fees, and the Operating Expenses exclude non-cash Pension and OPEB year-end adjustment credits and SBITA adjustment Credit. Page 118 of 159 PRELIMINARY FY23 YEAR-END RESERVE BALANCES ATTACHMENT 2023 Activity Unaudited 4/3/2024 Post- Audited Preliminary Proposed Transfers Goal Balance Invest Asset Sale Funding @ Additional All Other NET ACTIVITY Balance Transfers for Balance (FMP FY24 Variance to 12/31/2022 Income Proceeds Budget Fundings Activity,Net TOTAL 12/31/2023 FY23 YE 12/31/2023 Beg.Bal) Goal ELECTRIC UTILITY General Fund $ 6,522,389 $ 186,401 $ $ (996,000) $ 2,360,000 $ 178,756 $ 1,729,157 $ 8,251,546 $ (475,763) $ 7,775,783 $ 7,850,000 $ (74,217) -1% Capital Reserve 11,310,604 251,087 - - (889,675) (638,588) 10,672,016 10,672,016 11,551,000 (878,984) -8% Vehicle Reserve 770,416 75,375 1,045 786,000 (153,974) 708,446 1,478,862 1,478,862 1,404,000 74,862 5% Deferred Liabilites Rsv. 2,107,871 61,737 61,737 2,169,608 2,169,608 2,166,000 3,608 0% Rate Reserve 6,845,380 130,053 210,000 (2,360,000) (2,019,947) 4,825,433 475,763 5,301,196 5,295,000 6,196 0% E subtotal-Reserves $ 27,556,660 $ 704,653 $ 1,045 $ - $ - $ (864,893) $ (159,195) $ 27,397,465 $ - $ 27,397,465 $ 28,266,000 $ (868,535) -3% Y2Y Change $ (159,195) $ (159,195) -1% -1% RESTRICTED Auction Revenues AB32-B 21 Use AB32 Cap&Trade 579,554 14,548 401,879 (550,000) (133,573) 445,980 445,980 420,000 25,980 6% Facility Fees 185,084 12,706 151,789 164,495 349,579 349,579 349,000 579 0% LCFS credits 68,049 1,857 25,759 (6,086) 21,530 89,579 89,579 90,000 (421) 0% 2022 COP Payment Fd 76,881 (23,234) (23,234) 53,648 53,648 54,000 (352) -1% 2022 COP Project Fund 6,544,562 191,526 191,526 6,736,089 6,736,089 6,736,000 89 0% E Total Reserves $ 35,010,790 $ 925,291 $ 428,682 $ - $ 151,789 $ (1,444,213) $ 61,550 $ 35,072,340 $ - $ 35,072,340 $ 35,915,000 $ (842,660) -2% WATER UTILITY General Fund $ 7,682,371 $ 270,155 (247,000) $ 292,566 $ 2,169,964 $ 2,485,685 $ 10,168,055 $ (1,985,000) $ 8,183,055 $ 8,183,000 $ 55 0% Capital Reserve 1,021,821 52,256 52,256 1,074,077 1,985,000 3,059,077 2,562,000 497,077 19% Vehicle Reserve 382,735 31,372 36,100 247,000 - (245,553) 68,919 451,654 451,654 370,000 81,654 22% DL Surcharge 177,548 9,426 111,312 (97,837) 22,901 200,448 200,448 200,000 448 0% MW&PR PP Connec.Fee 79,292 4,062 - - 4,062 83,354 83,354 83,000 354 0% Deferred Liabilites Rsv. 108,280 5,547 5,547 113,826 113,826 114,000 (174) 0% W subtotal Reserves $ 9,452,047 $ 372,817 $ 36,100 $ - $ 403,877 $ 1,826,575 $ 2,639,369 $ 12,091,415 $ - $ 12,091,415 $ 11,512,000 $ 579,415 5% Y2YChange $ 2,639,369 $ 2,639,369 28% 28% W RESTRICTED Facility Fees 2,631,787 81,601 455,751 (1,134,958) (597,606) 2,034,180 2,034,180 1,819,000 215,180 12% 2015 COP Payment Fund 132,287 2,147 2,147 134,433 134,433 134,000 433 2022 COP Payment Fund 136,297 (17,266) (17,266) 119,031 119,031 119,000 31 0% 2022 COP Project Fund 11,879,665 334,113 (11,181,119) (10,847,006) 1,032,659 1,032,659 - 1,032,659 DLAD Fund 120,950 4,710 4,710 125,660 125,660 126,000 (340) 0% West River St.A.D, 38,801 1,987 1,987 40,788 40,788 41,000 (212) -1% TSA SAD II Impv.Fd. 18,718 959 959 19,677 19,677 20,000 (323) -2% W Total Reserves $ 24,410,551 $ 796,187 $ 36,100 $ $ 859,628 $ (10,504,621) $ (8,812,706) $ 15,597,845 $ $ 15,597,845 $ 13,771,000 $ 1,826,845 13% Goal column above reflects Financial Master Plan forecast amounts as part of FY24/FY25 budget approval. Above report amounts excluded non-cash Reserve cash balances are impacted by changes in working District policy goals by reserve: unrealized gain/loss and discounts/premiums capital(example Accounts Payable Increase(Decrease), Operating(General Fund)Reserve Goal-50%of annual expenditures,before Depreciation&Purchase Power. on investments. Receivables Decrease(Increase). Genearlly consistent year The General Fund serves as the operating reserve. to year. Capital Reserve Goal-average annual budget for capital replacement Vehicle Reserve Goal-sufficient funds to fund necessary expenditures forecasted Deferrred Liabiliites Reserve Goal-dollar amount determined by Board of Directors Rate Reserve Goal-only Electric,minimum reserve equal to six months of budgeted purchased power cost. 3/27/2024 8:32 PM Reserve Account Recons 2023 Summary Page 119 of 159 FACILITIES FEES ANNUAL STATUS REPORT ATTACHMENT 4 FYE 1213112023 ELECTRIC FACILITIES FEES: 1.0.136.90 Summary 5 Years 2019 2020 2021 2022 2023 Ended12/31/2023 Beginning Balance $ 581,670 $ 918,914 $ 748,126 $ 9,126 $ 185,084 $ 581,670 Facilities fees collected during year 316,907 252,839 261,440 173,490 151,789 1,156,464 Interest earnings during period 20,337 12,041 3,386 2,468 12,706 50,937 Project expenditures during period - (435,667) (1,003,825) - - (1,439,492) Ending Balance $ 918,914 $ 748,126 $ 9,126 $ 185,084 $ 349,579 $ 349,579 Total amount available-See NOTE $ 1,207,401 Less:Amount collected over last 5 years $ (857,822)Amount greater than 5 years old-NONE WATER FACILITIES FEES: 2.0.136.25&2.0.136.90 Summary 5 Years 2019 2020 2021 2022 2023 Ended 12/31/2023 Beginning Balance $ 834,810 $ 1,430,706 $ 1,839,196 $ 2,273,803 $ 2,631,787 $ 834,810 Facilities fees collected during period 921,392 746,294 784,087 909,475 455,751 3,816,999 Interest earnings during period 29,828 19,813 6,699 23,464 81,601 161,405 Debt Payments-facilities fees share (355,324) (357,617) (356,179) (358,008) (358,672) (1,785,800) 2006 COPs Debt Service-FF portion Project expenditures during period (216,948) (16,351) (233,299) Red Mtn Tank(FF cash outlfow) Project expenditures during period - - - - (759,935) (759,935) 6170 Tank FF portion(FF cash outlfow) Ending Balance $ 1,430,706 $ 1,839,196 $ 2,273,803 $ 2,631,787 $ 2,034,180 $ 2,034,180 Total amount available-See NOTE $ 3,978,404 Less:Amount collected over last 5 years $ (1,944,224) Amount greater than 5 years old-NONE NOTE: If"Total amount available"is greater than"Amount collected over the last 5 years",then the District has facilities fees on hand that are greater than 5 years old. If the amount of facilities fees on hand is greater than 5 years old,the District would have to either refund the money to customers or the Board would have to issue a finding that the money greater than 5 years old was being held to pay for a specific project. This report shows that the District does not have any electric or water facility fees on hand that are greater than 5 years old. 3/26/2024 Facilities Fees Recap YE 12.31.23 Recap Page 120 of 159