LINCOLN ELECTRIC SYSTEM Revenue & Expense Statement (Condensed) NOVEMBER 2018

Transcription

1 Revenue & Expense Statement (Condensed) NOVEMBER 2018 YEAR TO DATE (Dollar amounts in 000) Percentage Actual Budget Difference Difference 1) Total Revenue $306,439 $295,389 $11,050 4% Comments On a YTD basis, Retail revenue is slightly above budget. A very cold November resulted in Residential energy sales being 11% over budget for the month. YTD energy use per customer (residential) continues to be noteable as it is up 8% above 2017 and 4% above the prior 10 year average. Wholesale revenue is 28.9% above budget YTD primarily due to higher than budgeted sales into the SPP IM as WS4 and TBGS have been called on to generate more than expected / budgeted due to favorable pricing. 2) Power Costs 118, ,363 (6,842) Produced Power costs are 5% below budget on a YTD basis primarily due to lower than budgeted LRS operation and maintenance costs, partially offset by higher TBGS energy costs. Purchased Power costs are 6% below budget primarily due to favorable pricing in SPP IM, lower WS3 energy expenses and lower renewable wind generation and expenses. -5% 3) Other Operating Expenses 64,939 78,277 (13,338) Other Operating expenses (operation & maintenance, administrative & general) continue to be under budget (-17%) due to the timing of project spending in categories including line clearance, wheeling, transmission (balanced portfolio credit), sustainable energy program -17% participation, consulting services, and software purchases. 4) Depreciation 47,056 46, % 5) Total Expenses 230, ,521 (20,005) -8% 6) Operating Income 75,923 44,868 31,055 69% 7) Non-Operating Expense (Income) 36,803 38,077 (1,274) -3% 8) Change in Net Position (Net Revenue) $39,120 $6,791 $32, % YE Projection Budget 9) Debt Service Coverage Actual Budget 10) Days Cash on Hand (Days)

2 FINANCIAL AND OPERATING STATEMENT November 2018 LES.com

3 INDEX REVENUE & EXPENSE STATEMENT - CURRENT MONTH REVENUE & EXPENSE STATEMENT - YEAR-TO-DATE REVENUES, ENERGY & CUSTOMERS - CURRENT MONTH REVENUES, ENERGY & CUSTOMERS - YEAR-TO-DATE OPERATING EXPENSE STATEMENT - CURRENT MONTH OPERATING EXPENSE STATEMENT - YEAR-TO-DATE BALANCE SHEET STATEMENT OF CASH FLOWS DEBT SERVICE COVERAGE INVESTMENT REPORT NOTE: Federal Energy Regulatory Commission accounting guidance for the Southwest Power Pool Integrated Market (SPP IM) transactions (purchases, sales and other charges) requires netting together these transactions based on the time increments. If, during the time increment, sales to SPP are greater than purchases from SPP, the net amount is recorded as wholesale revenue. If, during the time increment, purchases from SPP are greater than sales to SPP, the net amount is recorded as purchased power cost. Because of this netting process, the energy (MWH s) amounts no longer directly correlate to wholesale revenue.

4 REVENUE & EXPENSE STATEMENT NOVEMBER 2018 CURRENT MONTH CURRENT CURRENT VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION MONTH MONTH BUDGET MONTH LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % OPERATING REVENUES 1. Retail $18,110,691 $16,382,522 $1,728, % $18,710,364 ($599,673) -3.2% 2. Wholesale 5,555,010 2,466,499 3,088, % 2,151,571 3,403, % 3. Other Revenue 742, , , % 655,721 86, % 4. City Dividend 633, ,385 10, % 594,125 39, % 5. Total Operating Revenues 25,041,110 19,985,662 5,055, % 22,111,781 2,929, % OPERATING EXPENSES 6. Purchased Power 5,214,603 5,468,925 (254,322) -4.7% 7,008,841 (1,794,238) -25.6% 7. Produced Power 5,356,854 4,973, , % 4,093,623 1,263, % 8. Operations 1,550,300 2,431,939 (881,639) -36.3% 1,649,154 (98,854) -6.0% 9. Maintenance 609, ,809 (99,852) -14.1% 660,220 (50,263) -7.6% 10. Administrative & General 3,235,315 3,457,027 (221,712) -6.4% 2,997, , % 11. Depreciation 4,284,996 4,312,900 (27,904) -0.6% 4,271,203 13, % 12. Total Operating Expenses 20,252,025 21,353,906 (1,101,881) -5.2% 20,680,531 (428,506) -2.1% 13. OPERATING INCOME 4,789,085 (1,368,244) 6,157, % 1,431,250 3,357, % NONOPERATING EXPENSES (INCOME) 14. Interest Expense 2,208,645 2,199,896 8, % 1,891, , % 15. Capitalized Interest (220,559) (158,793) (61,766) 38.9% (82,659) (137,900) 166.8% 16. Payments in Lieu of Taxes 936, , , % 908,720 28, % 17. City Dividend Expense 635, , % 622,269 13, % 18. Other (44) -91.7% 19. Total Other Expense 3,560,213 3,456, , % 3,340, , % 20. Interest Income (410,159) (241,292) (168,867) 70.0% (159,496) (250,663) 157.2% 21. Total Nonoperating Expense (Income) 3,150,054 3,214,894 (64,840) -2.0% 3,180,641 (30,587) -1.0% 22. Income Before Contributions 1,639,031 (4,583,138) 6,222, % (1,749,391) 3,388, % CONTRIBUTED CAPITAL 23. Contributed Capital Received 110, ,317 3, % 83,762 27, % 24. Contributed Capital Used (110,972) (107,317) (3,655) 3.4% (83,762) (27,210) 32.5% 25. Net Contributed Capital CHANGE IN NET POSITION $1,639,031 ($4,583,138) $6,222, % ($1,749,391) $3,388, % Page 1

5 REVENUE & EXPENSE STATEMENT NOVEMBER 2018 YEAR-TO-DATE VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION YEAR TO DATE YEAR TO DATE BUDGET YEAR TO DATE LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % OPERATING REVENUES 1. Retail $254,106,877 $252,368,734 $1,738, % $247,354,374 $6,752, % 2. Wholesale 38,579,493 29,928,067 8,651, % 35,690,783 2,888, % 3. Other Revenue 6,892,217 6,193, , % 6,823,998 68, % 4. City Dividend 6,860,579 6,899,055 (38,476) -0.6% 6,717, , % 5. Total Operating Revenues 306,439, ,389,296 11,049, % 296,587,076 (5,796,378) 3.3% OPERATING EXPENSES 6. Purchased Power 64,429,588 68,258,749 (3,829,161) -5.6% 74,698,568 (10,268,980) -13.7% 7. Produced Power 54,091,767 57,103,942 (3,012,175) -5.3% 57,429,422 (3,337,655) -5.8% 8. Operations 18,993,884 27,754,518 (8,760,634) -31.6% 21,391,522 (2,397,638) -11.2% 9. Maintenance 7,301,556 8,043,064 (741,508) -9.2% 6,697, , % 10. Administrative & General 38,643,748 42,479,682 (3,835,934) -9.0% 37,497,578 1,146, % 11. Depreciation 47,056,187 46,881, , % 46,640, , % 12. Total Operating Expenses 230,516, ,521,043 (20,004,313) -8.0% 244,355,147 (13,838,417) -5.7% 13. OPERATING INCOME 75,922,436 44,868,253 31,054, % 52,231,929 23,690, % NONOPERATING EXPENSES (INCOME) 14. Interest Expense 23,014,106 23,121,847 (107,741) -0.5% 21,161,638 1,852, % 15. Capitalized Interest (1,594,344) (1,786,138) 191, % (581,484) (1,012,860) 174.2% 16. Payments in Lieu of Taxes 11,699,137 12,461,727 (762,590) -6.1% 12,016,765 (317,628) -2.6% 17. City Dividend Expense 6,884,167 6,884, % 6,742, , % 18. Other (1,269) 0 (1,269) - - 2,471 (3,740) % 19. Total Other Expense 40,001,797 40,681,599 (679,802) -1.7% 39,341, , % 20. Interest Income (3,198,682) (2,604,213) (594,469) 22.8% (1,475,652) (1,723,030) 116.8% 21. Total Nonoperating Expense (Income) 36,803,115 38,077,386 (1,274,271) -3.3% 37,866,311 (1,063,196) -2.8% 22. Income Before Contributions 39,119,321 6,790,867 32,328, % 14,365,618 24,753, % CONTRIBUTED CAPITAL 23. Contributed Capital Received 860,379 1,180,487 (320,108) -27.1% 884,190 (23,811) -2.7% 24. Contributed Capital Used (860,379) (1,180,487) 320, % (884,190) 23, % 25. Net Contributed Capital CHANGE IN NET POSITION $39,119,321 $6,790,867 $32,328, % $14,365,618 $24,753, % Page 2

6 REVENUES, ENERGY & CUSTOMERS NOVEMBER 2018 CURRENT MONTH CURRENT CURRENT VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION MONTH MONTH BUDGET MONTH LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % REVENUE 1. Residential $8,098,555 $7,323,564 $774, % $7,508,465 $590, % 2. Commercial (a) 8,380,733 8,254, , % 8,243, , % 3. Industrial 2,598,251 2,654,444 (56,193) -2.1% 2,554,112 44, % 4. Street Light 208, ,197 14, % 194,288 14, % 5. Total Billed 19,285,942 18,427, , % 18,500, , % 6. Unbilled Change (1,175,251) (2,044,509) 869, % 210,335 (1,385,586) 0.0% 7. Total Retail 18,110,691 16,382,522 1,728, % 18,710,364 (599,673) -3.2% 8. SPP Sales 4,151,388 1,305,336 2,846, % 1,112,844 3,038, % 9. Contract Sales 1,403,622 1,161, , % 1,038, , % 10. Total Wholesale 5,555,010 2,466,499 3,088, % 2,151,571 3,403, % 11. Total $23,665,701 $18,849,021 $4,816, % $20,861,935 $2,803, % ENERGY (Megawatt-Hours) 12. Residential 87,562 75,163 12, % 82,940 4, % 13. Commercial (a) 112, ,684 (1,107) -1.0% 110,696 1, % 14. Industrial 38,906 41,353 (2,447) -5.9% 38, % 15. Street Light 1,647 1,757 (110) -6.3% 1,743 (96) -5.5% 16. Total Billed 240, ,957 8, % 233,890 6, % 17. Unbilled Change (12,650) (6,590) (6,060) 0.0% 1,364 (14,014) 0.0% 18. Total Retail 228, ,367 2, % 235,254 (7,212) -3.1% 19. SPP Sales 133,515 67,025 66, % 40,008 93, % 20. Contract Sales 53,858 37,817 16, % 25,013 28, % 21. Total Wholesale 187, ,842 82, % 65, , % 22. Total 415, ,209 85, % 300, , % CUSTOMERS 23. Residential 123, , % 122,239 1, % 24. Commercial (a) 16,945 16, % 16, % 25. Industrial (1) -0.6% 177 (2) -1.1% 26. Street Light % % 27. Total Retail 140, , % 139,201 1, % 28. Wholesale % % 29. Total 140, , % 139,208 1, % Page 3

7 REVENUES, ENERGY & CUSTOMERS NOVEMBER 2018 YEAR-TO-DATE VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION YEAR TO DATE YEAR TO DATE BUDGET YEAR TO DATE LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % REVENUE 1. Residential $116,220,552 $111,083,387 $5,137, % $109,208,321 $7,012, % 2. Commercial (a) 107,285, ,441,878 (156,867) -0.1% 105,728,085 1,556, % 3. Industrial 29,167,692 30,650,353 (1,482,661) -4.8% 29,743,435 (575,743) -1.9% 4. Street Light 2,330,042 2,138, , % 2,124, , % 5. Total Billed 255,003, ,314,456 3,688, % 246,803,952 8,199, % 6. Unbilled Change (896,420) 1,054,278 (1,950,698) 0.0% 550,422 (1,446,842) 0.0% 7. Total Retail 254,106, ,368,734 1,738, % 247,354,374 6,752, % 8. SPP Sales 23,276,273 15,192,113 8,084, % 21,930,492 1,345, % 9. Contract Sales 15,303,220 14,735, , % 13,760,291 1,542, % 10. Total Wholesale 38,579,493 29,928,067 8,651, % 35,690,783 2,888, % 11. Total $292,686,370 $282,296,801 $10,389, % $283,045,157 $9,641, % ENERGY (Megawatt-Hours) 12. Residential 1,201,126 1,124,602 76, % 1,104,588 96, % 13. Commercial (a) 1,392,119 1,400,663 (8,544) -0.6% 1,366,390 25, % 14. Industrial 419, ,013 (36,921) -8.1% 434,275 (15,183) -3.5% 15. Street Light 18,951 19,382 (431) -2.2% 19,412 (461) -2.4% 16. Total Billed 3,031,288 3,000,660 30, % 2,924, , % 17. Unbilled Change (15,633) 8,160 (23,793) 0.0% 2,154 (17,787) 0.0% 18. Total Retail 3,015,655 3,008,820 6, % 2,926,819 88, % 19. SPP Sales 937, , , % 822, , % 20. Contract Sales 552, ,568 49, % 438, , % 21. Total Wholesale 1,489,580 1,122, , % 1,260, , % 22. Total 4,505,235 4,131, , % 4,186, , % CUSTOMERS AVERAGE 23. Residential 122, , % 121,560 1, % 24. Commercial (a) 16,901 16, % 16, % 25. Industrial % % 26. Street Light % % 27. Total Retail 139, , % 138,418 1, % 28. Wholesale % % 29. Total 139, , % 138,425 1, % Page 4

8 OPERATING EXPENSE STATEMENT NOVEMBER 2018 CURRENT MONTH CURRENT CURRENT VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION MONTH MONTH BUDGET MONTH LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % POWER COST 1. SPP Purchased Power $185,566 $489,172 ($303,606) -62.1% $828,563 ($642,997) -77.6% 2. Non-Owned Asset Power 5,029,037 4,979,753 49, % 6,180,278 (1,151,241) -18.6% 3. Total Purchased Power 5,214,603 5,468,925 (254,322) -4.7% 7,008,841 (1,794,238) -25.6% 4. Produced Power 5,356,854 4,973, , % 4,093,623 1,263, % 5. Total Power Cost 10,571,457 10,442, , % 11,102,464 (531,007) -4.8% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 1,775,813 1,902,412 (126,599) -6.7% 1,656, , % 7. Transmission 384,444 1,239,336 (854,892) -69.0% 653,136 (268,692) -41.1% 8. Total O & M Expense 2,160,257 3,141,748 (981,491) -31.2% 2,309,374 (149,117) -6.5% ADMINISTRATIVE & GENERAL (A&G) 9. Administration 186, ,606 11, % 197,894 (10,913) -5.5% 10. Communication & Corporate Records 147, ,365 (66,189) -31.0% 150,874 (3,698) -2.5% 11. Corporate Operations 398, ,174 (11,519) -2.8% 361,259 37, % 12. Customer Services 870, ,509 (86,851) -9.1% 894,178 (23,520) -2.6% 13. Financial Services 298, ,887 (12,433) -4.0% 260,623 37, % 14. Power Supply 287, ,269 (35,662) -11.0% 334,894 (47,287) -14.1% 15. Technology Services 1,045,784 1,066,217 (20,433) -1.9% 797, , % 16. Total A & G Expense 3,235,315 3,457,027 (221,712) -6.4% 2,997, , % 17. DEPRECIATION 4,284,996 4,312,900 (27,904) -0.6% 4,271,203 13, % 18. TOTAL OPERATING EXPENSE $20,252,025 $21,353,906 ($1,101,881) -5.2% $20,680,531 ($428,506) -2.1% Page 5

9 OPERATING EXPENSE STATEMENT NOVEMBER 2018 YEAR-TO-DATE VARIANCE FROM LAST YEAR VARIANCE FROM DESCRIPTION YEAR TO DATE YEAR TO DATE BUDGET YEAR TO DATE LAST YEAR ACTUAL BUDGET AMOUNT % ACTUAL AMOUNT % POWER COST 1. SPP Purchased Power $7,089,478 $9,109,968 ($2,020,490) -22.2% $4,552,446 $2,537, % 2. Non-Owned Asset Power 57,340,110 59,148,781 (1,808,671) -3.1% 70,146,122 (12,806,012) -18.3% 3. Total Purchased Power 64,429,588 68,258,749 (3,829,161) -5.6% 74,698,568 (10,268,980) -13.7% 4. Produced Power 54,091,767 57,103,942 (3,012,175) -5.3% 57,429,422 (3,337,655) -5.8% 5. Total Power Cost 118,521, ,362,691 (6,841,336) -5.5% 132,127,990 (13,606,635) -10.3% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 20,133,247 22,225,121 (2,091,874) -9.4% 16,866,295 3,266, % 7. Transmission 6,162,193 13,572,461 (7,410,268) -54.6% 11,222,302 (5,060,109) -45.1% 8. Total O & M Expense 26,295,440 35,797,582 (9,502,142) -26.5% 28,088,597 (1,793,157) -6.4% ADMINISTRATIVE & GENERAL (A&G) 9. Administration 2,134,916 2,239,376 (104,460) -4.7% 2,113,405 21, % 10. Communication & Corporate Records 2,026,715 2,676,750 (650,035) -24.3% 1,763, , % 11. Corporate Operations 5,404,774 5,232, , % 5,067, , % 12. Customer Services 9,340,136 11,020,791 (1,680,655) -15.2% 10,214,679 (874,543) -8.6% 13. Financial Services 3,371,652 3,704,796 (333,144) -9.0% 3,258, , % 14. Power Supply 3,494,667 3,717,575 (222,908) -6.0% 3,610,879 (116,212) -3.2% 15. Technology Services 12,870,888 13,887,689 (1,016,801) -7.3% 11,469,660 1,401, % 16. Total A & G Expense 38,643,748 42,479,682 (3,835,934) -9.0% 37,497,578 1,146, % 17. DEPRECIATION 47,056,187 46,881, , % 46,640, , % 18. TOTAL OPERATING EXPENSE $230,516,730 $250,521,043 ($20,004,313) -8.0% $244,355,147 ($13,838,417) -5.7% Page 6

10 BALANCE SHEET NOVEMBER 2018 ASSETS & DEFERRED OUTFLOWS OF RESOURCES LIABILITIES AND NET POSITION END OF VARIANCE END OF VARIANCE DESCRIPTION MONTH SINCE DESCRIPTION MONTH SINCE BALANCE JANUARY 1 BALANCE JANUARY 1 CURRENT ASSETS: CURRENT LIABILITIES: 1. Revenue Fund (including CDFUO) $124,486,653 $67,507,259 OTHER LIABILITIES 2. Payments in Lieu of Taxes Fund $11,198,131 ($575,560) 1. Accounts Payable $18,682,851 ($2,825,900) 3. Rate Stabilization Fund 34,310, , Accrued Payments in Lieu of Taxes 12,133,662 (1,202,302) 4. Bond Principal & Interest Funds 12,978,520 (1,600,601) 3. City Dividend for Utility Ownership Payable 1,906,011 (583,065) 5. Other Restricted/Designated Funds 3,356, , Commercial Paper Notes 65,500,000 (30,000,000) 6. Restricted/Designated Funds Total 50,645,968 (739,473) 5. Accrued Liabilities 14,025,947 2,112, Total Current Asset Funds 186,330,752 66,192, MBPP-BNSF-STB Settlement Receivables Less Uncollectible Allowance 22,306,156 2,202, Total Other Liabilities 112,248,471 (32,498,739) 9. Unbilled Revenue 13,190,371 (896,419) CURRENT LIABILITIES - RESTRICTED ASSETS 10. Accrued Interest Receivable 1,166, , Current Portion of Long-Term Debt 22,750,000 3,270, Materials, Supplies & Fuel Inventory 14,036,696 1,309, Accrued Interest 7,370,898 (856,173) 12. Plant Operation Assets 14,165,565 (2,836,586) 10. Other Current Liabilities 1,470,010 71, Other Current Assets 2,833, , Total Current Liabilities - Restricted Assets 31,590,908 2,485, Total Current Assets 254,030,047 67,202, Total Current Liabilities 143,839,379 (30,013,004) NONCURRENT ASSETS: NONCURRENT LIABILITIES: 15. Bond Reserve Funds 19,255,223 2,522, Bonds 1,150, Self Funded Benefits Reserve Fund (IBNP) 537,967 5, A Bonds 217,020, Segregated Funds 650, Bonds 75,525, Restricted Fund Total 20,443,680 2,527, A Bonds 167,800, Unamortized Debt Expense 2,854, , Bonds 80,095,000 (19,480,000) 20. Other Noncurrent Assets 3,331, , Bonds 121,205, ,205, Total Noncurrent Assets 26,629,319 3,995, Total Revenue Bonds 662,795, ,725, Less Current Maturities 22,750,000 3,270,000 CAPITAL ASSETS: 21. Less Unamortized Discounts/Premiums (67,834,877) (13,940,054) 22. Utility Plant in Service 1,559,133,208 37,366, Note Purchase Agreement 1,500,000 1,500, Accumulated Depreciation & Amortization (775,360,729) (40,815,335) 23. Revolving Credit Agreement 0 (30,000,000) 24. Construction Work in Progress 142,300,247 27,195, Net Long Term Debt 709,379,877 83,895, Total Capital Assets 926,072,726 23,747, Liabilities Payable from Segregated Funds 646, Other Noncurrent Liabilities 532,436 0 DEFERRED OUTFLOWS OF RESOURCES: 27. Total Liabilities 854,397,829 53,882, Deferred Loss on Refunded Debt 13,511,043 (1,943,578) NET POSITION: 28. Net Investment in Capital Assets 162,412,465 (61,132,889) 29. Restricted for Debt Service 5,712,639 (671,745) 30. Restricted for Employee Health Insurance Claims 504,788 (430,263) 31. Unrestricted 197,215, ,354, Total Net Position 365,845,306 39,119, TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $1,220,243,135 $93,001, TOTAL LIABILITIES & NET POSITION $1,220,243,135 $93,001,371 Page 7

11 STATEMENT OF CASH FLOWS NOVEMBER 2018 CURRENT MONTH YEAR-TO-DATE CASH FLOW FROM OPERATING ACTIVITIES: 1. Received from Sales to Customers and Users $26,801,932 $322,018, Paid to Suppliers for Goods & Services (13,413,519) (169,504,008) 3. Paid to Employees for Services (2,636,881) (30,904,008) 4. Cash Flow from Operating Activities (a) 10,751, ,610,439 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: 5. Payments in Lieu of Taxes 0 (12,901,441) 6. City Dividend for Utility Ownership Payments 0 (7,467,232) 7. Other Cash Flow from (used for) Non-capital Financing Activities 0 (20,368,672) CASH FLOWS FROM INVESTING ACTIVITIES: 9. Net (Purchases) Sales of Investments (5,480,780) (76,227,806) 10. Interest Income 308,661 2,140, Cash Flow from (used for) Investing Activities (5,172,119) (74,087,167) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: 12. Acquisition and Construction of Capital Assets (4,948,436) (69,697,262) 13. Salvage on Retirement of Plant 3, , Cost of Removal of Property Retired (31,865) (1,849,487) 15. Debt Issuance Cost Paid 0 (872,230) 16. Debt Premiums Collected 0 19,612, Net Capital Contributions 110, , Net Proceeds form Issuance of Long-Term Debt 0 122,705, Principal Payments on Long-Term Debt 0 (79,480,000) 20. Interest Payments on Long-Term Debt (230,065) (26,740,061) 21. Cash Flow from (used for) Capital Financing Activities (5,095,895) (34,903,930) 22. Net Increase (Decrease) in Cash and Cash Equivalents 483,518 (7,749,330) 23. Cash and Cash Equivalent Beginning of Period 15,209,339 23,442, Cash and Cash Equivalent End of Period (b) $15,692,857 $15,692,857 STATEMENT OF CASH FLOW FOOTNOTES (a) Reconciliation of operating income to cash flows from operating activities 1. Net Operating Revenue $4,789,085 $75,922, Noncash items included in operating income 4,375,810 48,055, Changes in Assets & Liabilities Increase/(Decrease) 1,586,637 (2,367,638) 4. Net cash flows from operating activities $10,751,532 $121,610,439 (b) Cash and cash equivalents are defined as cash and investments with original maturities of three months or less. Page 8

12 DEBT SERVICE COVERAGE NOVEMBER CURRENT MONTH YEAR-TO-DATE DESCRIPTION ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL THIS YEAR THIS YEAR LAST YEAR THIS YEAR THIS YEAR LAST YEAR 1. Total Operating Revenues $25,041,110 $19,985,662 $22,111,781 $306,439,166 $295,389,296 $296,587, Total Operating Expenses 20,252,025 21,353,906 20,680, ,516, ,521, ,355, Less Depreciation (4,284,996) (4,312,900) (4,271,203) (47,056,187) (46,881,088) (46,640,982) 4. Operating Expense Net of Depreciation 15,967,029 17,041,006 16,409, ,460, ,639, ,714, Net Operating Revenue for Debt Service 9,074,081 2,944,656 5,702, ,978,623 91,749,341 98,872, Interest Income (a) 359, , ,632 2,572,305 2,203,670 1,168, Other Income Rate Stabilization Fund AVAILABLE FOR DEBT SERVICE 9,433,140 3,149,535 5,834, ,550,928 93,953, ,041, DEBT SERVICE (b) 4,324,651 4,430,031 3,643,885 43,152,840 43,470,611 39,045, DEBT SERVICE COVERAGE (a) Excludes interest from Rate Stabilization Fund. (b) Includes Bond Principal & Interest only. Page 9

13 INVESTMENT REPORT NOVEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE CASH - REVENUE FUND / WORKING FUND ($706,431) ($706,431) SHORT TERM FEDERAL INVESTMENT TRUST (STFIT) 11,417,097 11,417,097 REVENUE FUND Federated Treasury Obligations Fund * 1.850% 100, ,701 Hannover Funding Co. LLC Commercial Paper 06/28/ /12/ % 2.786% 7,404,323 7,500,000 Korea Development Bank Commercial Paper 06/28/ /04/ % 2.462% 7,403,813 7,500,000 Shinhan Bank NY Branch Commercial Paper 06/28/ /22/ % 2.697% 7,368,052 7,500,000 U.S. Treasury Note 06/28/ /15/ % 2.220% 7,435,425 7,500,000 Banco Santander SA/NY Commercial Paper 07/26/ /01/ % 2.648% 7,482,967 7,620,000 ING (U.S.) Funding LLC Commercial Paper 07/10/ /05/ % 2.579% 4,988,869 5,085,000 U.S. Treasury Note 06/28/ /30/ % 2.301% 7,434,750 7,500,000 U.S. Treasury Note 06/28/ /15/ % 2.311% 7,552,800 7,500,000 Societe Generale Commercial Paper 08/27/ /24/ % 2.621% 7,497,643 7,645,000 Bedford Row Funding Corp Commercial Paper 08/28/ /24/ % 2.589% 3,433,572 3,500,000 China Construction Bank Corp Commercial Paper 11/20/ /24/ % 3.037% 4,923,174 5,000,000 Bank of China (Hong Kong) Commercial Paper 09/21/ /18/ % 2.735% 5,761,812 5,880,000 Federal Home Loan Banks Bond 06/29/ /21/ % 2.350% 7,411,692 7,500,000 Agricultural Bank of China Ltd. Commercial Paper 10/10/ /05/ % 2.860% 7,461,165 7,620,000 U.S. Treasury Note 06/28/ /15/ % 2.345% 7,376,979 7,500,000 Banco del Estado de Chile Commercial Paper 10/22/ /19/ % 2.860% 7,499,140 7,660,000 Glencove Funding LLC Commercial Paper 11/02/ /19/ % 2.858% 5,105,047 5,210,000 Discount \ (Premium) 134,063 Total Revenue Fund 100, ,675, ,320,701 PILOT FUND Federated Treasury Obligations Fund * 1.850% 12,354 12,354 MUFG Bank, Ltd., NY Branch Commercial Paper 04/20/ /14/ % 2.444% 864, ,000 J.P. Morgan Securities Commercial Paper 05/18/ /11/ % 2.496% 962, ,000 J.P. Morgan Securities Commercial Paper 06/20/ /15/ % 2.579% 946, ,000 Natixis, New York Branch Commercial Paper 07/20/ /05/ % 2.525% 1,119,660 1,140,000 Federal Home Loan Banks Bond 03/22/ /08/ % 2.120% 990,029 1,000,000 Glencove Funding LLC Commercial Paper 11/20/ /18/ % 2.741% 978, ,000 Canadian Imperial Holdings Inc Commercial Paper 08/20/ /26/ % 2.482% 1,445,191 1,470,000 Bayerische Landesbank, NY Commercial Paper 10/19/ /26/ % 2.677% 1,375,665 1,395,000 Bedford Row Funding Corp Commercial Paper 09/28/ /29/ % 2.548% 1,408,763 1,430,000 U.S. Treasury Note 02/20/ /30/ % 2.105% 1,083,869 1,090,000 Discount \ (Premium) 10,601 Total PILOT Fund $12,354 $11,185,777 $11,352,354 (a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less. * Interest rate as of end of month. Page 10a

14 INVESTMENT REPORT NOVEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE BOND RESERVE FUNDS Federated Treasury Obligations Fund * 1.850% $35,517 $35,517 Federal National Mortgage Association Bond 05/28/ /01/ % 1.650% 1,416,805 1,505,000 Federal Home Loan Mortgage Corporation Bond 06/28/ /15/ % 2.400% 2,916,449 2,950,000 Federal National Mortgage Association Bond 09/01/ /28/ % 1.150% 355, ,000 Federal Home Loan Banks Bond 08/28/ /21/ % 2.630% 2,344,766 2,345,000 Federal National Mortgage Association Bond 09/01/ /28/ % 1.400% 1,400,000 1,400,000 Federal National Mortgage Association Bond 09/01/ /28/ % 1.400% 2,340,000 2,340,000 Federal Home Loan Banks Bond 03/14/ /28/ % 2.400% 3,750,000 3,750,000 Federal National Mortgage Association Bond 06/28/ /28/ % 2.800% 4,600,000 4,600,000 Discount \ (Premium) 96,686 Total Bond Reserve Funds 35,517 19,219,706 19,280,517 BOND PRINCIPAL & INTEREST FUNDS Federated Treasury Obligations Fund * 1.850% 62,056 62,056 ERP Operating LP Commercial Paper 10/31/ /07/ % 2.690% 2,436,974 2,455,000 Bayerische Landesbank, NY Commercial Paper 09/28/ /25/ % 2.557% 2,399,436 2,425,000 Cigna Corporation Commercial Paper 11/30/ /25/ % 3.042% 2,432,119 2,450,000 JP Morgan Securities LLC Commercial Paper 10/31/ /26/ % 2.964% 1,878,549 1,920,000 International Bank for Reconstruction and Dev Note 09/28/ /15/ % 2.610% 1,866,569 1,895,000 Glencove Funding LLC Commercial Paper 11/30/ /26/ % 3.016% 1,897,236 1,940,000 Discount \ (Premium) 5,581 Total Bond Principal & Interest Funds 2,494,175 10,484,345 13,147,056 RATE STABILIZATION FUND Federated Treasury Obligations Fund * 1.850% 202, ,123 Federal National Mortgage Association Bond 02/10/ /14/ % 1.140% 6,323,252 6,325,000 Federal Farm Credit Banks Bond 06/29/ /12/ % 1.391% 5,048,485 5,050,000 Federal National Mortgage Association Bond 12/11/ /26/ % 1.820% 1,729,662 1,732,000 Federal Home Loan Mortgage Corporation Bond 01/30/ /27/ % 2.150% 8,091,809 8,150,000 Federal Farm Credit Banks Bond 12/20/ /12/ % 1.916% 5,135,888 5,140,000 Federal Farm Credit Banks Bond 01/12/ /10/ % 1.970% 2,549,006 2,550,000 Federal Farm Credit Banks Bond 06/29/ /11/ % 2.580% 5,197,014 5,200,000 Discount \ (Premium) 33,584 Total Rate Stabilization Fund $202,123 $34,108,700 $34,349,123 (a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less. * Interest rate as of end of month. Page 10b

15 INVESTMENT REPORT NOVEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE SELF-FUNDED HEALTH & DENTAL CLAIMS FUND Federated Treasury Obligations Fund * 1.850% $907,949 $907,949 Federal Home Loan Bank Discount Note 09/28/ /13/ % 2.150% 995,482 1,000,000 Discount \ (Premium) Total Self-Funded Health & Dental Claims Fund 1,903, ,907,949 SELF-FUNDED HEALTH & DENTAL RESERVE FUND (INCURRED BUT NOT PRESENTED) Federated Treasury Obligations Fund * 1.850% 8,064 8,064 Federal Farm Credit Banks Bond 01/12/ /14/ % 1.781% 527, ,000 Discount \ (Premium) 2,224 Total Self-Funded Health & Dental Reserve Fund 8, , ,064 SEGREGATED ACCOUNT Federated Treasury Obligations Fund * 1.850% 225, ,826 Federal National Mortgage Association Bond 12/29/ /14/ % 1.780% 198, ,000 U.S. Treasury Bill 06/29/ /20/ % 2.300% 1,271,321 1,300,000 U.S. Treasury Note 09/17/ /31/ % 2.661% 405, ,000 Discount \ (Premium) 1,828 Total Segregated Account 225,826 1,877,858 2,135,826 TOTAL $15,692,857 $191,081,575 $208,742,256 (a) Cash and cash equivalents are defined as cash & investments with original maturities of three months or less. * Interest rate as of end of month. Page 10c