March. Fleet Services Fund FINANCIAL REPORT

Transcription

1 March Fleet Services Fund 2017 FINANCIAL REPORT

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3 Public Utility Board MARK PATTERSON Chair MONIQUE TRUDNOWSKI Vice-Chair WOODROW JONES Secretary KAREN LARKIN Member BRYAN FLINT Member WILLIAM A. GAINES Director of Utilities/CEO DON ASHMORE Utilities Fleet Manager ANDREW CHERULLO Finance Director DEPARTMENT OF PUBLIC UTILITIES CITY OF TACOMA

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5 MANAGEMENT DISCUSSION AND ANALYSIS Fleet Services is reporting a net operating loss of $1.3 million year-to-date 2017 compared to a net loss of $162,000 recorded for the same time period in Operating revenues decreased $1.0 million and expenses increased $131,000 respectively, resulting in a net decrease in operating income of $1.2 million compared to Revenues Fleet Services operating revenue is comprised of five categories: Maintenance, Capital Recovery, Administrative Overhead, Fuel and Fuel Loading and Pool Car Rentals. Operating revenues were $705,000 and $1.7 million at the end of the 1st quarter of 2017 and 2016 respectively. Maintenance revenues are mainly related to staff labor and were $416,000 and $368,000 at the end of the first quarter of both 2017 and 2016 respectively. Capital recovery revenues are collected on each vehicle and piece of equipment based on anticipated equipment replacement needs for each business unit. Capital recovery revenues were $38,000 and $1.1 million in 2017 and 2016 respectively. The decline is primarily due to Tacoma Power discontinuing their contribution until an analysis of future purchase needs is complete. Tacoma Water and Tacoma Rail have been contributing a portion of their replacement costs with the remainder to begin in May 2017 after a review of their future needs. Administrative Overhead revenue is the fee charged for each vehicle that is in service. The number of vehicles in service varies from month to month and the rate can vary based on type of vehicle. Administrative Overhead revenue was $209,000 and $200,000 in 2017 and 2016 respectively. Fuel and fuel loading revenues are affected by year to year changes in vehicle usage and fluctuations in fuel prices. Fuel related revenues were $14,000 and $10,000 in 2017 and 2016 respectively. Pool car revenues are based on usage and were $28,000 and $25,000 for 2017 and 2016 respectively. Expenses Fleet Services operating expenses are comprised of four major categories: Repairs and service, stores operations, administration and depreciation. Fleet Services expenses were $2.0 million and $1.9 million year-to-date through the first quarter of both 2017 and Repairs and service expense relates to shop operations which provide preventive and corrective maintenance and repairs to vehicles and pieces of equipment for Tacoma Public Utilities and other service groups. Repair and service expenses were $688,000 in both 2017 and i

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7 CITY OF TACOMA, WASHINGTON DEPARTMENT OF PUBLIC UTILITIES FLEET SERVICES FUND TABLE OF CONTENTS Note: These financial statements are interim, unaudited reports prepared primarily for the use of management. Not all transactions reported in these statements have been recorded on the full accrual basis of accounting or in accordance with generally accepted accounting principles. STATEMENTS OF NET POSITION STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION STATEMENTS OF CASH FLOWS EQUITY DISTRIBUTION... 7 SUPPLEMENTAL DATA

8 CITY OF TACOMA, WASHINGTON DEPARTMENT OF PUBLIC UTILITIES FLEET SERVICES FUND STATEMENTS OF NET POSITION MARCH 31, 2017 AND MARCH 31, 2016 ASSETS FIXED Office Furniture and Equipment... $616,901 $540,905 Stores and Shop Equipment , ,125 Transportation Equipment... 42,810,288 37,622,968 Power-Operated Equipment... 19,105,895 18,943,655 Accumulated Depreciation... (38,208,304) (37,665,559) Total Fixed Assets... 25,044,160 20,134,094 Construction Work in Progress ,898 1,650,802 Net Fixed Assets... 25,669,058 21,784,896 CURRENT Current Fund Cash & Equity in Pooled Investments 18,856,736 22,567,699 Materials and Supplies , ,918 Total Current Assets... 19,149,862 22,831,617 OTHER ASSESTS Net Pension Asset ,261 DEFERRED OUTFLOWS OF RESOURCES Deferred Outflows for Pensions , ,412 TOTAL ASSETS AND DEFERRED OUTFLOWS... $45,783,630 $44,958,186 These statements should be read in conjunction with the Notes to Financial Statements contained in the 2016 Annual Report

9 NET POSITION AND LIABILITIES NET POSITION Invested in Capital Assets... $25,669,058 $21,784,896 Restricted for: Tacoma Power... 18,095,346 18,093,165 Tacoma Water... 7,199,933 7,199,933 Tacoma Rail , ,147 Net Pension Asset ,261 Unrestricted... (7,485,530) (3,720,747) TOTAL NET POSITION... 44,459,954 44,439,655 LIABILITIES CURRENT LIABILITIES Accounts Payable & Other... 77,924 80,117 Wages Payable , ,592 Total Current Liabilities , ,709 LONG-TERM LIABILITIES Employee Vacation and Sick Leave Accrual , ,922 Net Pension Liability ,359 - Total Long-term Liabilities... 1,066, ,922 TOTAL LIABILITIES... 1,267, ,631 DEFERRED INFLOW OF RESOURCES Deferred Inflows for Pensions... 55, ,900 TOTAL NET POSITION,LIABILITIES AND DEFERRED INFLOWS $45,783,630 $44,958,

10 CITY OF TACOMA, WASHINGTON DEPARTMENT OF PUBLIC UTILITIES FLEET SERVICES FUND STATEMENTS OF REVENUE, EXPENSES AND CHANGES IN NET POSITION MARCH 31, 2017 AND MARCH 31, 2016 MARCH MARCH OPERATING REVENUE Maintenance Revenue... $186,476 $143,281 Capital Recovery... 12, ,661 Administrative Overhead... 71,951 68,912 Fuel and Fuel Loading... 5,146 3,873 Pool Car Rental... 9,166 8,871 Total Operating Revenue , ,598 OPERATING EXPENSES Repairs and Servicing Shop Operations , ,162 Outside Services... 20,775 19,088 Total Repairs and Servicing , ,250 Stores Operations... 21,621 27,810 Administration , ,955 Depreciation , ,648 Total Operating Expenses , ,663 OPERATING INCOME... (426,373) (19,065) NON-OPERATING REVENUES (EXPENSES) Interest Income... 4,325 (19,750) Gain (Loss) on Disposition of Equipment , ,768 Sale of Scrap... 12,500 6,875 Total Non-Operating Revenues (Expenses) , ,893 NET INCOME... ($303,042) $120,828 TOTAL NET POSITION - JANUARY 1... TOTAL NET POSITION - MARCH These statements should be read in conjunction with the Management Discussion and Analysis in the March 2017 Financial Report

11 YEAR TO DATE MARCH MARCH 2017/2016 PERCENT VARIANCE CHANGE $415,739 $368,047 $47, % 38,516 1,121,338 (1,082,822) -96.6% 208, ,449 8, % 14,431 10,417 4, % 28,213 25,431 2, % 705,471 1,725,682 (1,020,211) -59.1% 667, ,149 (1,810) -0.3% 20,984 19,205 1, % 688, ,354 (31) 0.0% 68,390 76,077 (7,687) -10.1% 378, ,695 13, % 883, , , % 2,018,901 1,887, , % (1,313,430) (162,208) (1,151,222) 709.7% 71,483 75,479 (3,996) 5.3% 107, ,768 (45,064) 29.5% 12,500 6,875 5, % 191, ,122 (43,435) 18.5% (1,121,743) 72,914 ($1,194,657) % 45,581,697 44,366,741 $44,459,954 $44,439,

12 CITY OF TACOMA, WASHINGTON DEPARTMENT OF PUBLIC UTILITIES FLEET SERVICES FUND STATEMENTS OF CASH FLOWS YEAR TO DATE MARCH 31, MARCH 31, CASH FLOWS FROM OPERATING ACTIVITIES Cash From Customers... $951,621 $2,535,893 Cash Paid to Suppliers... (1,053,145) (1,435,464) Cash Paid to Employees... (739,469) (737,866) Net Cash Provided by (Used In) Operating Activities... (840,993) 362,563 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital Expenditures, Net... (302,660) (268,439) Disposition of Equipment/Scrap , ,643 Net Cash Used in Financing Activities... (182,456) (108,796) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received... 71,483 75,479 Net Cash Provided By Investing Activities... 71,483 75,479 Net Change in Cash and Equity in Pooled Investments... (951,966) 329,246 Cash and Equity in Pooled Investments at January 1 19,808,702 22,238,453 Cash and Equity in Pooled Investments at March 31 $18,856,736 $22,567,699 These statements should be read in conjunction with the Notes to Financial Statements contained in the 2017 Annual Report

13 Reconciliation of Operating Income to Net Cash Provided by Operating Activities: YEAR TO DATE MARCH 31, MARCH 31, Operating Income... ($1,313,430) ($162,208) Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation and Amortization , ,764 Accounts Receivable ,758 - Interdivision Receivable... 32, ,391 Materials and Supplies... 2,912 20,506 Accounts Payable & Other... (607,092) (328,975) Interdivision Payable... (103,224) (785,250) Absences Payable... 49,859 49,515 Total Adjustments , ,771 Net Cash Provided by Operating Activities... ($840,993) $362,

14 CITY OF TACOMA, WASHINGTON DEPARTMENT OF PUBLIC UTILITIES FLEET SERVICES FUND EQUITY DISTRIBUTION AS OF MARCH 31, 2017 TACOMA TACOMA TACOMA POWER WATER RAIL TOTAL Balance January 1, $30,343,339 $13,713,445 $1,524,913 $45,581,697 Contributions During Year Equity Contrib. at March 31, ,343,339 13,713,445 1,524,913 45,581,697 Current Year Operations: Total Operating Revenue * , ,244 23, ,471 Less: Repairs & Servicing Expense * 458, ,085 23, ,323 Administration Expense ** ,037 97,257 15, ,746 Depreciation Expense , ,176 24, ,832 Total Expenses... 1,459, ,518 63,433 2,018,901 Net Operating Revenue... (990,324) (283,274) (39,832) (1,313,430) Add: Other Income *** ,586 57,679 6, ,687 Net Operating Results... (862,738) (225,595) (33,410) (1,121,743) Total Equity... $29,480,601 $13,487,850 $1,491,503 $44,459,954 * Allocated to each division based on total receipts from the divisions. ** Allocated to each division based on vehicle count. *** Allocated to each division based on total equity in the Fund

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16 TOTAL OPERATING REVENUES Year to Date - March 2017 ($705,471) Maintenance Revenues 59% Capital Recovery 5% All Others 36% TOTAL OPERATING REVENUES Year to Date - March 2016 ($1,725,682) Capital Recovery 65% Maintenance Revenues 21% All Others 14% - 9 -

17 TOTAL OPERATING EXPENSES Year to Date - March 2017 ($2,018,901) Repairs 34% Stores Operations 3% Administration 19% Depreciation 44% TOTAL OPERATING EXPENSES Year to Date - March 2016 ($1,887,890) Repairs 36% Stores Operations 4% Administration 19% Depreciation 41%

18 The City of Tacoma does not discriminate on the basis of disability in any of its programs, activities, or services. To request this information in an alternative format or to request a reasonable accommodation, please contact the City Clerk s Office at (253) TTY or speech to speech users please dial 711 to connect to Washington Relay Services.