LINCOLN ELECTRIC SYSTEM Revenue & Expense Statement (Condensed) DECEMBER 2018 UNAUDITED

Transcription

1 YEAR TO DATE Revenue & Expense Statement (Condensed) DECEMBER 2018 (Dollar amounts in 000) Percentage Actual Budget Difference Difference 10) Total Revenue $332,902 $320,678 $12,224 4% On a YTD basis, Retail revenue is slightly above budget. YTD energy use per customer (residential) continues to be notable, it is 8% above Wholesale revenue is 26.6% 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. 11) Power Costs 129, ,996 (7,251) 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 WS4, Rokeby, and TBGS energy costs. Purchased Power costs are 5% below budget primarily due to favorable pricing in SPP IM, lower WS3 energy expenses and lower renewable wind generation and -5% expenses. 12) Other Operating Expenses 73,032 85,176 (12,144) Other Operating expenses (operation & maintenance, administrative & general) are under budget (-14%) due to the timing of project spending in categories including line clearance, wheeling, transmission (balanced portfolio credit), sustainable energy program participation, consulting services, and software purchases, partially offset by a true-up of the sick-leave -14% vesting liability. 13) Depreciation 51,359 51, % 14) Total Expenses 254, ,393 (19,257) -7% 15) Operating Income 78,766 47,285 31,481 67% 16) Non-Operating Expense (Income) 39,472 41,407 (1,935) -5% 17) Change in Net Position (Net Revenue) $39,294 $5,878 $33, % Comments YE Projection Budget 9) Debt Service Coverage Actual Budget 10) Days Cash on Hand (Days)

2 FINANCIAL AND OPERATING STATEMENT December 2018 Unaudited 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 DECEMBER 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 $21,612,326 $20,873,573 $738, % $20,463,558 $1,148, % 2. Wholesale 3,486,244 3,310, , % 3,256, , % 3. Other Revenue 746, , , % 653,276 93, % 4. City Dividend 617, ,085 4, % 589,109 28, % 5. Total Operating Revenues 26,463,097 25,288,256 1,174, % 24,962,597 1,500, % OPERATING EXPENSES 6. Purchased Power 5,957,766 6,177,424 (219,658) -3.6% 7,381,009 (1,423,243) -19.3% 7. Produced Power 5,265,750 5,456,357 (190,607) -3.5% 6,985,749 (1,719,999) -24.6% 8. Operations 1,636,487 2,423,399 (786,912) -32.5% 1,484, , % 9. Maintenance 654, ,015 (34,952) -5.1% 528, , % 10. Administrative & General 5,802,611 3,786,111 2,016, % 2,604,310 3,198, % 11. Depreciation 4,302,968 4,340,151 (37,183) -0.9% 4,312,949 (9,981) -0.2% 12. Total Operating Expenses 23,619,645 22,872, , % 23,296, , % 13. OPERATING INCOME 2,843,452 2,415, , % 1,666,034 1,177, % NONOPERATING EXPENSES (INCOME) 14. Interest Expense 2,191,225 2,199,882 (8,657) -0.4% 1,900, , % 15. Capitalized Interest (211,720) (266,279) 54, % (91,577) (120,143) 131.2% 16. Payments in Lieu of Taxes 962,584 1,006,103 (43,519) -4.3% 992,568 (29,984) -3.0% 17. City Dividend Expense 635, , % 622,269 13, % 18. Other ,500,000 (10,499,880) % 19. Total Other Expense 3,577,546 3,575,043 2, % 13,923,674 (10,346,128) -74.3% 20. Interest Income (908,350) (245,657) (662,693) 269.8% 19,239 (927,589) % 21. Total Nonoperating Expense (Income) 2,669,196 3,329,386 (660,190) -19.8% 13,942,913 (11,273,717) -80.9% 22. Income Before Contributions 174,256 (913,587) 1,087, % (12,276,879) 12,451, % CONTRIBUTED CAPITAL 23. Contributed Capital Received 46, ,320 (60,978) -56.8% 51,739 (5,397) -10.4% 24. Contributed Capital Used (46,342) (107,320) 60, % (51,739) 5, % 25. Net Contributed Capital CHANGE IN NET POSITION $174,256 ($913,587) $1,087, % ($12,276,879) $12,451, % Page 1

5 REVENUE & EXPENSE STATEMENT DECEMBER 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 $275,719,203 $273,242,307 $2,476, % $267,817,933 $7,901, % 2. Wholesale 42,065,737 33,238,414 8,827, % 38,947,437 3,118, % 3. Other Revenue 7,639,059 6,684, , % 7,477, , % 4. City Dividend 7,478,264 7,512,140 (33,876) -0.5% 7,307, , % 5. Total Operating Revenues 332,902, ,677,552 12,224, % 321,549,672 (5,796,378) 3.5% OPERATING EXPENSES 6. Purchased Power 70,387,353 74,436,173 (4,048,820) -5.4% 82,079,576 (11,692,223) -14.2% 7. Produced Power 59,357,517 62,560,299 (3,202,782) -5.1% 64,415,171 (5,057,654) -7.9% 8. Operations 20,630,371 30,177,917 (9,547,546) -31.6% 27,887,253 (7,256,882) -26.0% 9. Maintenance 7,955,619 8,732,079 (776,460) -8.9% 2,213,889 5,741, % 10. Administrative & General 44,446,360 46,265,793 (1,819,433) -3.9% 40,101,888 4,344, % 11. Depreciation 51,359,155 51,221, , % 50,953, , % 12. Total Operating Expenses 254,136, ,393,500 (19,257,125) -7.0% 267,651,708 (13,515,333) -5.0% 13. OPERATING INCOME 78,765,888 47,284,052 31,481, % 53,897,964 24,867, % NONOPERATING EXPENSES (INCOME) 14. Interest Expense 25,205,330 25,321,729 (116,399) -0.5% 23,062,052 2,143, % 15. Capitalized Interest (1,806,065) (2,052,417) 246, % (673,061) (1,133,004) 168.3% 16. Payments in Lieu of Taxes 12,661,721 13,467,830 (806,109) -6.0% 13,009,332 (347,611) -2.7% 17. City Dividend Expense 7,519,504 7,519, % 7,364, , % 18. Other (1,149) 0 (1,149) ,502,473 (10,503,622) % 19. Total Other Expense 43,579,341 44,256,642 (677,301) -1.5% 53,265,638 (9,686,297) -18.2% 20. Interest Income (4,107,031) (2,849,870) (1,257,161) 44.1% (1,456,413) (2,650,618) 182.0% 21. Total Nonoperating Expense (Income) 39,472,310 41,406,772 (1,934,462) -4.7% 51,809,225 (12,336,915) -23.8% 22. Income Before Contributions 39,293,578 5,877,280 33,416, % 2,088,739 37,204, % CONTRIBUTED CAPITAL 23. Contributed Capital Received 906,721 1,287,807 (381,086) -29.6% 935,929 (29,208) -3.1% 24. Contributed Capital Used (906,721) (1,287,807) 381, % (935,929) 29, % 25. Net Contributed Capital CHANGE IN NET POSITION $39,293,578 $5,877,280 $33,416, % $2,088,739 $37,204, % Page 2

6 REVENUES, ENERGY & CUSTOMERS DECEMBER 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 $9,239,699 $9,040,703 $198, % $8,095,142 $1,144, % 2. Commercial (a) 8,122,535 8,682,009 (559,474) -6.4% 8,023,081 99, % 3. Industrial 2,319,668 2,563,365 (243,697) -9.5% 2,410,534 (90,866) -3.8% 4. Street Light 199, ,148 5, % 194,478 5, % 5. Total Billed 19,881,482 20,480,225 (598,743) -2.9% 18,723,235 1,158, % 6. Unbilled Change 1,730, ,348 1,337, % 1,740,323 (9,479) 0.0% 7. Total Retail 21,612,326 20,873, , % 20,463,558 1,148, % 8. SPP Sales 2,229,561 1,920, , % 2,082, , % 9. Contract Sales 1,256,683 1,389,446 (132,763) -9.6% 1,174,423 82, % 10. Total Wholesale 3,486,244 3,310, , % 3,256, , % 11. Total $25,098,570 $24,183,920 $914, % $23,720,212 $1,378, % ENERGY (Megawatt-Hours) 12. Residential 107, ,417 2, % 92,080 15, % 13. Commercial (a) 112, ,484 (8,868) -7.3% 111,352 1, % 14. Industrial 34,601 39,208 (4,607) -11.8% 36,245 (1,644) -4.5% 15. Street Light 1,531 1,756 (225) -12.8% 1,746 (215) -12.3% 16. Total Billed 255, ,865 (10,940) -4.1% 241,423 14, % 17. Unbilled Change 27,685 8,838 18, % 26,440 1, % 18. Total Retail 283, ,703 7, % 267,863 15, % 19. SPP Sales 103,159 81,920 21, % 85,173 17, % 20. Contract Sales 55,416 54,237 1, % 35,033 20, % 21. Total Wholesale 158, ,157 22, % 120,206 38, % 22. Total 442, ,860 30, % 388,069 54, % CUSTOMERS 23. Residential 123, , % 122,210 1, % 24. Commercial (a) 16,964 16, % 16, % 25. Industrial % 177 (1) -0.6% 26. Street Light % % 27. Total Retail 140, , % 139,194 1, % 28. Wholesale % % 29. Total 140, , % 139,201 1, % Page 3

7 REVENUES, ENERGY & CUSTOMERS DECEMBER 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 $125,460,251 $120,124,090 $5,336, % $117,303,463 $8,156, % 2. Commercial (a) 115,407, ,123,887 (716,341) -0.6% 113,751,166 1,656, % 3. Industrial 31,487,360 33,213,718 (1,726,358) -5.2% 32,153,969 (666,609) -2.1% 4. Street Light 2,529,622 2,332, , % 2,318, , % 5. Total Billed 274,884, ,794,681 3,090, % 265,527,188 9,357, % 6. Unbilled Change 834,424 1,447,626 (613,202) 0.0% 2,290,745 (1,456,321) 0.0% 7. Total Retail 275,719, ,242,307 2,476, % 267,817,933 7,901, % 8. SPP Sales 25,505,834 17,113,014 8,392, % 24,012,723 1,493, % 9. Contract Sales 16,559,903 16,125, , % 14,934,714 1,625, % 10. Total Wholesale 42,065,737 33,238,414 8,827, % 38,947,437 3,118, % 11. Total $317,784,940 $306,480,721 $11,304, % $306,765,370 $11,019, % ENERGY (Megawatt-Hours) 12. Residential 1,308,303 1,229,019 79, % 1,196, , % 13. Commercial (a) 1,504,735 1,522,147 (17,412) -1.1% 1,477,742 26, % 14. Industrial 453, ,221 (41,528) -8.4% 470,520 (16,827) -3.6% 15. Street Light 20,483 21,138 (655) -3.1% 21,159 (676) -3.2% 16. Total Billed 3,287,214 3,267,525 19, % 3,166, , % 17. Unbilled Change 12,052 16,998 (4,946) 0.0% 28,594 (16,542) 0.0% 18. Total Retail 3,299,266 3,284,523 14, % 3,194, , % 19. SPP Sales 1,040, , , % 907, , % 20. Contract Sales 607, ,805 51, % 473, , % 21. Total Wholesale 1,648,155 1,258, , % 1,380, , % 22. Total 4,947,421 4,543, , % 4,574, , % CUSTOMERS 23. Residential 122, , % 121,614 1, % 24. Commercial (a) 16,906 16, % 16, % 25. Industrial % % 26. Street Light % % 27. Total Retail 140, , % 138,482 1, % 28. Wholesale % % 29. Total 140, , % 138,489 1, % Page 4

8 OPERATING EXPENSE STATEMENT DECEMBER 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 $565,014 $556,650 $8, % $445,812 $119, % 2. Non-Owned Asset Power 5,392,752 5,620,774 (228,022) -4.1% 6,935,197 (1,542,445) -22.2% 3. Total Purchased Power 5,957,766 6,177,424 (219,658) -3.6% 7,381,009 (1,423,243) -19.3% 4. Produced Power 5,265,750 5,456,357 (190,607) -3.5% 6,985,749 (1,719,999) -24.6% 5. Total Power Cost 11,223,516 11,633,781 (410,265) -3.5% 14,366,758 (3,143,242) -21.9% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 1,803,013 1,841,104 (38,091) -2.1% 1,612, , % 7. Transmission 487,537 1,271,310 (783,773) -61.7% 399,672 87, % 8. Total O & M Expense 2,290,550 3,112,414 (821,864) -26.4% 2,012, , % ADMINISTRATIVE & GENERAL (A&G) 9. Administration 134, ,749 (82,745) -38.2% 166,245 (32,241) -19.4% 10. Communication & Corporate Records 134, ,320 (51,708) -27.8% 187,041 (52,429) -28.0% 11. Corporate Operations 2,569, ,626 2,158, % (695,874) 3,264, % 12. Customer Services 1,178,128 1,031, , % 493, , % 13. Financial Services 267, ,929 (48,270) -15.3% 292,798 (25,139) -8.6% 14. Power Supply 354, ,943 21, % 339,861 14, % 15. Technology Services 1,164,715 1,292,382 (127,667) -9.9% 1,820,298 (655,583) -36.0% 16. Total A & G Expense 5,802,611 3,786,111 2,016, % 2,604,310 3,198, % 17. DEPRECIATION 4,302,968 4,340,151 (37,183) -0.9% 4,312,949 (9,981) -0.2% 18. TOTAL OPERATING EXPENSE $23,619,645 $22,872,457 $747, % $23,296,563 $323, % Page 5

9 OPERATING EXPENSE STATEMENT DECEMBER 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 $7,654,492 $9,666,618 ($2,012,126) -20.8% $4,998,257 $2,656, % 2. Non-Owned Asset Power 62,732,861 64,769,555 (2,036,694) -3.1% 77,081,319 (14,348,458) -18.6% 3. Total Purchased Power 70,387,353 74,436,173 (4,048,820) -5.4% 82,079,576 (11,692,223) -14.2% 4. Produced Power 59,357,517 62,560,299 (3,202,782) -5.1% 64,415,171 (5,057,654) -7.9% 5. Total Power Cost 129,744, ,996,472 (7,251,602) -5.3% 146,494,747 (16,749,877) -11.4% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 21,936,260 24,066,225 (2,129,965) -8.9% 18,479,169 3,457, % 7. Transmission 6,649,730 14,843,771 (8,194,041) -55.2% 11,621,973 (4,972,243) -42.8% 8. Total O & M Expense 28,585,990 38,909,996 (10,324,006) -26.5% 30,101,142 (1,515,152) -5.0% ADMINISTRATIVE & GENERAL (A&G) 9. Administration 2,268,920 2,456,125 (187,205) -7.6% 2,279,650 (10,730) -0.5% 10. Communication & Corporate Records 2,161,327 2,863,070 (701,743) -24.5% 1,950, , % 11. Corporate Operations 7,973,838 5,643,331 2,330, % 4,371,169 3,602, % 12. Customer Services 10,518,264 12,051,953 (1,533,689) -12.7% 10,708,620 (190,356) -1.8% 13. Financial Services 3,639,311 4,020,725 (381,414) -9.5% 3,551,652 87, % 14. Power Supply 3,849,096 4,050,518 (201,422) -5.0% 3,950,739 (101,643) -2.6% 15. Technology Services 14,035,604 15,180,071 (1,144,467) -7.5% 13,289, , % 16. Total A & G Expense 44,446,360 46,265,793 (1,819,433) -3.9% 40,101,888 4,344, % 17. DEPRECIATION 51,359,155 51,221, , % 50,953, , % 18. TOTAL OPERATING EXPENSE $254,136,375 $273,393,500 ($19,257,125) -7.0% $267,651,708 ($13,515,333) -5.0% Page 6

10 BALANCE SHEET DECEMBER 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) $123,499,913 $66,520,519 OTHER LIABILITIES 2. Payments in Lieu of Taxes Fund $12,215,697 $442, Accounts Payable $26,043,025 $4,534, Rate Stabilization Fund 35,672,404 1,841, Accrued Payments in Lieu of Taxes 13,096,246 (239,718) 4. Bond Principal & Interest Funds 17,351,911 2,772, City Dividend for Utility Ownership Payable 2,541,348 52, Other Restricted/Designated Funds 2,832,035 (143,089) 4. Commercial Paper Notes 65,500,000 (30,000,000) 6. Restricted/Designated Funds Total 55,856,350 4,470, Accrued Liabilities 17,583,702 5,670, Total Current Asset Funds 191,571,960 71,433, MBPP-BNSF-STB Settlement Receivables Less Uncollectible Allowance 20,438, , Total Other Liabilities 124,764,321 (19,982,889) 9. Unbilled Revenue 14,921, ,425 CURRENT LIABILITIES - RESTRICTED ASSETS 10. Accrued Interest Receivable 1,176, , Current Portion of Long-Term Debt 22,750,000 3,270, Materials, Supplies & Fuel Inventory 13,812,318 1,085, Accrued Interest 9,900,406 1,673, Plant Operation Assets 11,793,564 (5,208,587) 10. Other Current Liabilities 1,479,469 81, Other Current Assets 2,840, , Total Current Liabilities - Restricted Assets 34,129,875 5,024, Total Current Assets 256,554,210 69,726, Total Current Liabilities 158,894,196 (14,958,187) NONCURRENT ASSETS: NONCURRENT LIABILITIES: 15. Bond Reserve Funds 19,235,311 2,502, Bonds 1,150, Self Funded Benefits Reserve Fund (IBNP) 587,962 55, A Bonds 217,020, Segregated Funds 650, Bonds 75,525, Restricted Fund Total 20,473,762 2,557, A Bonds 167,800, Unamortized Debt Expense 2,827, , Bonds 80,095,000 (19,480,000) 20. Other Noncurrent Assets 3,412, , Bonds 121,205, ,205, Total Noncurrent Assets 26,714,390 4,080, Total Revenue Bonds 662,795, ,725, Less Current Maturities 22,750,000 3,270,000 CAPITAL ASSETS: 21. Less Unamortized Discounts/Premiums (67,262,348) (13,367,525) 22. Utility Plant in Service 1,570,474,024 48,707, Note Purchase Agreement 1,500,000 1,500, Accumulated Depreciation & Amortization (776,872,089) (42,326,695) 23. Revolving Credit Agreement 0 (30,000,000) 24. Construction Work in Progress 144,744,994 29,640, Net Long Term Debt 708,807,348 83,322, Total Capital Assets 938,346,929 36,021, Liabilities Payable from Segregated Funds 646, Other Noncurrent Liabilities 587,962 55,526 DEFERRED OUTFLOWS OF RESOURCES: 27. Total Liabilities 868,935,643 68,419, Deferred Loss on Refunded Debt 13,339,677 (2,114,944) NET POSITION: 28. Net Investment in Capital Assets 175,178,421 (48,366,933) 29. Restricted for Debt Service 7,536,610 1,152, Restricted for Employee Health Insurance Claims 451,837 (483,214) 31. Unrestricted 182,852,695 86,991, Total Net Position 366,019,563 39,293, TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $1,234,955,206 $107,713, TOTAL LIABILITIES & NET POSITION $1,234,955,206 $107,713,442 Page 7

11 STATEMENT OF CASH FLOWS DECEMBER 2018 CURRENT MONTH YEAR-TO-DATE CASH FLOW FROM OPERATING ACTIVITIES: 1. Received from Sales to Customers and Users $28,209,989 $350,228, Paid to Suppliers for Goods & Services (4,641,250) (174,145,258) 3. Paid to Employees for Services (2,691,440) (33,595,448) 4. Cash Flow from Operating Activities (a) 20,877, ,487,738 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 6,662,702 (69,565,104) 10. Interest Income 1,183,505 3,324, Cash Flow from (used for) Investing Activities 7,846,207 (66,240,960) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: 12. Acquisition and Construction of Capital Assets (16,338,060) (86,035,322) 13. Salvage on Retirement of Plant 18, , Cost of Removal of Property Retired (228,488) (2,077,975) 15. Debt Issuance Cost Paid 0 (872,230) 16. Debt Premiums Collected 0 19,612, Net Capital Contributions 46, , 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 (3,357) (26,743,418) 21. Cash Flow from (used for) Capital Financing Activities (16,504,947) (51,408,877) 22. Net Increase (Decrease) in Cash and Cash Equivalents 12,218,559 4,469, Cash and Cash Equivalent Beginning of Period 15,692,857 23,442, Cash and Cash Equivalent End of Period (b) $27,911,416 $27,911,416 STATEMENT OF CASH FLOW FOOTNOTES (a) Reconciliation of operating income to cash flows from operating activities 1. Net Operating Revenue $2,843,452 $78,765, Noncash items included in operating income 4,392,683 52,448, Changes in Assets & Liabilities Increase/(Decrease) 13,641,164 11,273, Net cash flows from operating activities $20,877,299 $142,487,738 (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 DECEMBER 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 $26,463,097 $25,288,256 $24,962,597 $332,902,263 $320,677,552 $321,549, Total Operating Expenses 23,619,645 22,872,457 23,296, ,136, ,393, ,651, Less Depreciation (4,302,968) (4,340,151) (4,312,949) (51,359,155) (51,221,239) (50,953,931) 4. Operating Expense Net of Depreciation 19,316,677 18,532,306 18,983, ,777, ,172, ,697, Net Operating Revenue for Debt Service 7,146,420 6,755,950 5,978, ,125,043 98,505, ,851, Interest Income (a) 979, ,248 45,793 3,551,832 2,412,918 1,214, Other Income Rate Stabilization Fund (1,350,000) 0 0 (1,350,000) AVAILABLE FOR DEBT SERVICE 6,775,947 6,965,198 6,024, ,326, ,918, ,066, DEBT SERVICE (b) 4,324,655 4,430,034 3,643,886 47,477,494 47,900,645 42,688, DEBT SERVICE COVERAGE (a) Excludes interest from Rate Stabilization Fund. (b) Includes Bond Principal & Interest only. Page 9

13 INVESTMENT REPORT DECEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE CASH - REVENUE FUND / WORKING FUND $282,402 $282,402 SHORT TERM FEDERAL INVESTMENT TRUST (STFIT) 16,243,600 16,243,600 REVENUE FUND Federated Treasury Obligations Fund * 1.940% 837, ,011 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 Total Revenue Fund 837, ,136, ,557,011 PILOT FUND Federated Treasury Obligations Fund * 1.940% 104, ,589 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 Credit Agricole CIB Commercial Paper 12/20/ /26/ % 2.746% 935, ,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 Total PILOT Fund $104,589 $12,111,108 $12,389,589 (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 DECEMBER 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE BOND RESERVE FUNDS Federated Treasury Obligations Fund * 1.940% $112,291 $112,291 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 Total Bond Reserve Funds 112,291 19,123,020 19,357,291 BOND PRINCIPAL & INTEREST FUNDS Federated Treasury Obligations Fund * 1.940% 60,073 60,073 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 CNPC Finance HK Ltd. Commercial Paper 12/28/ /26/ % 3.066% 2,442,520 2,455,000 CNPC Finance HK Ltd. Commercial Paper 12/28/ /08/ % 3.068% 1,938,435 1,950,000 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 Total Bond Principal & Interest Funds 6,873,147 10,478,764 17,550,073 RATE STABILIZATION FUND Federated Treasury Obligations Fund * 1.940% 1,262,538 1,262,538 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 Federal Home Loan Banks Bond 12/17/ /18/ % 2.860% 6,658,002 6,665,000 Total Rate Stabilization Fund $1,262,538 $34,409,866 $35,749,538 (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 DECEMBER 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 * 1.940% $1,393,352 $1,393,352 Total Self-Funded Health & Dental Claims Fund 1,393, ,393,352 SELF-FUNDED HEALTH & DENTAL RESERVE FUND (INCURRED BUT NOT PRESENTED) Federated Treasury Obligations Fund * 1.940% 541, ,521 Total Self-Funded Health & Dental Reserve Fund 541, ,521 SEGREGATED ACCOUNT Federated Treasury Obligations Fund * 1.940% 260, ,965 U.S. Treasury Bill 06/29/ /20/ % 2.300% 1,271,321 1,300,000 Federal National Mortgage Association Bond 12/17/ /17/ % 2.701% 197, ,000 U.S. Treasury Note 09/17/ /31/ % 2.661% 405, ,000 Total Segregated Account 260,965 1,874,648 2,170,965 TOTAL $27,911,416 $184,134,306 $214,235,342 (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