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

Transcription

1 Revenue & Expense Statement (Condensed) JULY 2018 YEAR TO DATE (Dollar amounts in 000) Percentage Actual Budget Difference Difference 1) Total Revenue $192,525 $185,641 $6,884 4% Retail revenues have been consistently above budget, and through July are 3% above budget. This is primarily due to greater than budgeted use per residential customer combined with colder than average weather throughout the first four months of the year and warmer than average weather in the months since. Wholesale revenue is above budget 12.4% YTD primarily due to higher than budgeted sales into the SPP IM. 2) Power Costs 77,946 80,837 (2,891) Produced Power is 4% below budget on a YTD basis primarily due to LRS operation and maintenance costs. Purchased Power is also 4% below budget primarily due to favorable -4% pricing in SPP IM and lower renewable wind expenses. 3) Other Operating Expenses 41,376 50,005 (8,629) 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, transmission, consulting services, software purchases, and sustainable energy -17% program participation. 4) Depreciation 29,926 29, % 5) Total Expenses 149, ,494 (11,246) -7% 6) Operating Income 43,277 25,147 18,130 72% 7) Non-Operating Expense (Income) 23,076 23,584 (508) -2% 8) Change in Net Position (Net Revenue) $20,201 $1,563 $18, % Comments 9) Debt Service Coverage Year-end Projection ) Days Cash on Hand (Days) as of End of Month 191

2 FINANCIAL AND OPERATING STATEMENT July 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 JULY 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 $31,634,530 $34,848,220 ($3,213,690) -9.2% $31,135,515 $499, % 2. Wholesale 3,358,718 2,911, , % 4,290,360 (931,642) -21.7% 3. Other Revenue 532, ,463 21, % 448,706 83, % 4. City Dividend 640, ,692 (21,629) -3.3% 639, % 5. Total Operating Revenues 36,165,776 38,932,392 (2,766,616) -7.1% 36,514,466 (348,690) -1.0% OPERATING EXPENSES 6. Purchased Power 5,415,729 6,799,061 (1,383,332) -20.3% 6,963,823 (1,548,094) -22.2% 7. Produced Power 6,409,916 6,589,923 (180,007) -2.7% 6,259, , % 8. Operations 1,829,732 2,676,507 (846,775) -31.6% 2,018,270 (188,538) -9.3% 9. Maintenance 865, , , % 659, , % 10. Administrative & General 3,470,419 3,919,432 (449,013) -11.5% 3,288, , % 11. Depreciation 4,281,209 4,271,227 9, % 4,261,948 19, % 12. Total Operating Expenses 22,272,288 24,993,379 (2,721,091) -10.9% 23,451,066 (1,178,778) -5.0% 13. OPERATING INCOME 13,893,488 13,939,013 (45,525) -0.3% 13,063, , % NONOPERATING EXPENSES (INCOME) 14. Interest Expense 2,300,140 2,258,304 41, % 1,760, , % 15. Capitalized Interest (178,705) (141,177) (37,528) 26.6% (44,984) (133,721) 297.3% 16. Payments in Lieu of Taxes 1,451,991 1,718,451 (266,460) -15.5% 1,513,947 (61,956) -4.1% 17. City Dividend Expense 622, , % 609,471 12, % 18. Other % 19. Total Other Expense 4,195,718 4,457,847 (262,129) -5.9% 3,839, , % 20. Interest Income (350,366) (247,191) (103,175) 41.7% (146,591) (203,775) 139.0% 21. Total Nonoperating Expense (Income) 3,845,352 4,210,656 (365,304) -8.7% 3,692, , % 22. Income Before Contributions 10,048,136 9,728, , % 9,370, , % CONTRIBUTED CAPITAL 23. Contributed Capital Received 86, ,317 (20,965) -19.5% 46,973 39, % 24. Contributed Capital Used (86,352) (107,317) 20, % (46,973) (39,379) 83.8% 25. Net Contributed Capital CHANGE IN NET POSITION $10,048,136 $9,728,357 $319, % $9,370,960 $677, % Page 1

5 REVENUE & EXPENSE STATEMENT JULY 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 $163,246,902 $158,708,603 $4,538, % $155,548,723 $7,698, % 2. Wholesale 21,014,395 18,694,323 2,320, % 24,576,086 (3,561,691) -14.5% 3. Other Revenue 4,028,959 3,950,850 78, % 4,202,946 (173,987) -4.1% 4. City Dividend 4,234,985 4,286,950 (51,965) -1.2% 4,215,671 19, % 5. Total Operating Revenues 192,525, ,640,726 6,884, % 188,543,426 (5,796,378) 2.1% OPERATING EXPENSES 6. Purchased Power 43,144,265 44,763,083 (1,618,818) -3.6% 46,329,267 (3,185,002) -6.9% 7. Produced Power 34,802,181 36,073,992 (1,271,811) -3.5% 40,334,346 (5,532,165) -13.7% 8. Operations 12,322,731 17,382,600 (5,059,869) -29.1% 13,647,106 (1,324,375) -9.7% 9. Maintenance 4,340,040 4,986,852 (646,812) -13.0% 3,749, , % 10. Administrative & General 24,713,443 27,635,280 (2,921,837) -10.6% 24,040, , % 11. Depreciation 29,926,424 29,652, , % 29,586, , % 12. Total Operating Expenses 149,249, ,494,283 (11,245,199) -7.0% 157,686,335 (8,437,251) -5.4% 13. OPERATING INCOME 43,276,157 25,146,443 18,129, % 30,857,091 12,419, % NONOPERATING EXPENSES (INCOME) 14. Interest Expense 14,212,363 14,263,857 (51,494) -0.4% 13,553, , % 15. Capitalized Interest (770,907) (1,072,609) 301, % (327,910) (442,997) 135.1% 16. Payments in Lieu of Taxes 6,917,416 7,682,434 (765,018) -10.0% 7,553,722 (636,306) -8.4% 17. City Dividend Expense 4,355,885 4,355, % 4,266,295 89, % 18. Other (1,732) 0 (1,732) - - 2,104 (3,836) % 19. Total Other Expense 24,713,025 25,229,565 (516,540) -2.0% 25,047,748 (334,723) -1.3% 20. Interest Income (1,636,775) (1,645,406) 8, % (892,892) (743,883) 83.3% 21. Total Nonoperating Expense (Income) 23,076,250 23,584,159 (507,909) -2.2% 24,154,856 (1,078,606) -4.5% 22. Income Before Contributions 20,199,907 1,562,284 18,637, % 6,702,235 13,497, % CONTRIBUTED CAPITAL 23. Contributed Capital Received 499, ,219 (252,029) -33.5% 437,460 61, % 24. Contributed Capital Used (499,190) (751,219) 252, % (437,460) (61,730) 14.1% 25. Net Contributed Capital CHANGE IN NET POSITION $20,199,907 $1,562,284 $18,637, % $6,702,235 $13,497, % Page 2

6 REVENUES, ENERGY & CUSTOMERS JULY 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 $14,597,663 $14,027,961 $569, % $14,676,265 ($78,602) -0.5% 2. Commercial (a) 12,116,311 11,986, , % 11,890, , % 3. Industrial 2,925,672 3,104,359 (178,687) -5.8% 2,958,896 (33,224) -1.1% 4. Street Light 213, ,391 19, % 195,508 18, % 5. Total Billed 29,853,577 29,313, , % 29,721, , % 6. Unbilled Change 1,780,951 5,534,798 (3,753,847) 0.0% 1,414, , % 7. Total Retail 31,634,528 34,848,220 (3,213,692) -9.2% 31,135, , % 8. SPP Sales 1,925,375 1,382, , % 2,615,122 (689,747) -26.4% 9. Contract Sales 1,433,343 1,528,227 (94,884) -6.2% 1,675,238 (241,895) -14.4% 10. Total Wholesale 3,358,718 2,911, , % 4,290,360 (931,642) -21.7% 11. Total $34,993,246 $37,759,237 ($2,765,991) -7.3% $35,425,875 ($432,629) -1.2% ENERGY (Megawatt-Hours) 12. Residential 135, ,601 6, % 130,883 4, % 13. Commercial (a) 142, ,827 (1,670) -1.2% 141, % 14. Industrial 39,498 44,328 (4,830) -10.9% 41,461 (1,963) -4.7% 15. Street Light 1,726 1,761 (35) -2.0% 1,765 (39) -2.2% 16. Total Billed 319, ,517 (457) -0.1% 315,409 3, % 17. Unbilled Change 24,351 45,121 (20,770) 0.0% 20,345 4, % 18. Total Retail 343, ,638 (21,227) -5.8% 335,754 7, % 19. SPP Sales 73,836 46,024 27, % 90,781 (16,945) -18.7% 20. Contract Sales 55,266 52,407 2, % 61,100 (5,834) -9.5% 21. Total Wholesale 129,102 98,431 30, % 151,881 (22,779) -15.0% 22. Total 472, ,069 9, % 487,635 (15,122) -3.1% CUSTOMERS 23. Residential 123, , % 121,627 1, % 24. Commercial (a) 16,919 16, % 16, % 25. Industrial % 177 (1) -0.6% 26. Street Light % % 27. Total Retail 140, , % 138,483 1, % 28. Wholesale % % 29. Total 140, , % 138,490 1, % Page 3

7 REVENUES, ENERGY & CUSTOMERS JULY 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 $72,324,117 $65,962,821 $6,361, % $65,994,358 $6,329, % 2. Commercial (a) 64,967,168 64,237, , % 63,742,152 1,225, % 3. Industrial 17,887,255 18,565,607 (678,352) -3.7% 18,303,777 (416,522) -2.3% 4. Street Light 1,480,536 1,361, , % 1,345, , % 5. Total Billed 156,659, ,127,345 6,531, % 149,385,824 7,273, % 6. Unbilled Change 6,587,826 8,581,258 (1,993,432) 0.0% 6,162, , % 7. Total Retail 163,246, ,708,603 4,538, % 155,548,723 7,698, % 8. SPP Sales 11,806,261 9,562,330 2,243, % 16,116,080 (4,309,819) -26.7% 9. Contract Sales 9,208,134 9,131,993 76, % 8,460, , % 10. Total Wholesale 21,014,395 18,694,323 2,320, % 24,576,086 (3,561,691) -14.5% 11. Total $184,261,297 $177,402,926 $6,858, % $180,124,809 $4,136, % ENERGY (Megawatt-Hours) 12. Residential 788, ,512 88, % 704,792 83, % 13. Commercial (a) 870, ,540 9, % 849,717 21, % 14. Industrial 258, ,290 (19,818) -7.1% 269,278 (10,806) -4.0% 15. Street Light 12,143 12,348 (205) -1.7% 12,414 (271) -2.2% 16. Total Billed 1,929,924 1,851,690 78, % 1,836,201 93, % 17. Unbilled Change 48,851 64,153 (15,302) 0.0% 38,445 10, % 18. Total Retail 1,978,775 1,915,843 62, % 1,874, , % 19. SPP Sales 454, , , % 580,981 (126,122) -21.7% 20. Contract Sales 333, ,793 24, % 264,367 68, % 21. Total Wholesale 788, , , % 845,348 (57,245) -6.8% 22. Total 2,766,878 2,574, , % 2,719,994 46, % CUSTOMERS AVERAGE 23. Residential 122, , % 121,351 1, % 24. Commercial (a) 16,883 16, % 16, % 25. Industrial % % 26. Street Light % % 27. Total Retail 139, , % 138,179 1, % 28. Wholesale % % 29. Total 139, , % 138,186 1, % Page 4

8 OPERATING EXPENSE STATEMENT JULY 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 $658,697 $1,268,662 ($609,965) -48.1% $507,883 $150, % 2. Non-Owned Asset Power 4,757,032 5,530,399 (773,367) -14.0% 6,455,940 (1,698,908) -26.3% 3. Total Purchased Power 5,415,729 6,799,061 (1,383,332) -20.3% 6,963,823 (1,548,094) -22.2% 4. Produced Power 6,409,916 6,589,923 (180,007) -2.7% 6,259, , % 5. Total Power Cost 11,825,645 13,388,984 (1,563,339) -11.7% 13,223,227 (1,397,582) -10.6% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 2,034,385 2,063,859 (29,474) -1.4% 1,636, , % 7. Transmission 660,630 1,349,877 (689,247) -51.1% 1,041,478 (380,848) -36.6% 8. Total O & M Expense 2,695,015 3,413,736 (718,721) -21.1% 2,677,615 17, % ADMINISTRATIVE & GENERAL (A&G) 9. Administration 155, ,201 (59,927) -27.8% 207,418 (52,144) -25.1% 10. Communication & Corporate Records 218, ,971 (35,426) -13.9% 179,947 38, % 11. Corporate Operations 451, ,518 (10,005) -2.2% 394,439 57, % 12. Customer Services 779,823 1,030,559 (250,736) -24.3% 895,191 (115,368) -12.9% 13. Financial Services 323, ,518 5, % 278,097 45, % 14. Power Supply 287, ,864 (48,747) -14.5% 304,964 (17,847) -5.9% 15. Technology Services 1,254,758 1,304,801 (50,043) -3.8% 1,028, , % 16. Total A & G Expense 3,470,419 3,919,432 (449,013) -11.5% 3,288, , % 17. DEPRECIATION 4,281,209 4,271,227 9, % 4,261,948 19, % 18. TOTAL OPERATING EXPENSE $22,272,288 $24,993,379 ($2,721,091) -10.9% $23,451,066 ($1,178,778) -5.0% Page 5

9 OPERATING EXPENSE STATEMENT JULY 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 $6,301,497 $6,595,185 ($293,688) -4.5% $1,645,022 $4,656, % 2. Non-Owned Asset Power 36,842,768 38,167,898 (1,325,130) -3.5% 44,684,245 (7,841,477) -17.5% 3. Total Purchased Power 43,144,265 44,763,083 (1,618,818) -3.6% 46,329,267 (3,185,002) -6.9% 4. Produced Power 34,802,181 36,073,992 (1,271,811) -3.5% 40,334,346 (5,532,165) -13.7% 5. Total Power Cost 77,946,446 80,837,075 (2,890,629) -3.6% 86,663,613 (8,717,167) -10.1% OPERATION & MAINTENANCE (O&M) 6. Energy Delivery 12,410,680 13,940,393 (1,529,713) -11.0% 10,157,331 2,253, % 7. Transmission 4,252,091 8,429,059 (4,176,968) -49.6% 7,239,167 (2,987,076) -41.3% 8. Total O & M Expense 16,662,771 22,369,452 (5,706,681) -25.5% 17,396,498 (733,727) -4.2% ADMINISTRATIVE & GENERAL (A&G) 9. Administration 1,398,491 1,456,134 (57,643) -4.0% 1,328,913 69, % 10. Communication & Corporate Records 1,335,795 1,712,613 (376,818) -22.0% 1,087, , % 11. Corporate Operations 3,588,852 3,502,913 85, % 3,349, , % 12. Customer Services 5,729,534 7,000,730 (1,271,196) -18.2% 6,484,583 (755,049) -11.6% 13. Financial Services 2,142,528 2,362,294 (219,766) -9.3% 2,086,552 55, % 14. Power Supply 2,224,665 2,373,845 (149,180) -6.3% 2,255,730 (31,065) -1.4% 15. Technology Services 8,293,578 9,226,751 (933,173) -10.1% 7,447, , % 16. Total A & G Expense 24,713,443 27,635,280 (2,921,837) -10.6% 24,040, , % 17. DEPRECIATION 29,926,424 29,652, , % 29,586, , % 18. TOTAL OPERATING EXPENSE $149,249,084 $160,494,283 ($11,245,199) -7.0% $157,686,335 ($8,437,251) -5.4% Page 6

10 BALANCE SHEET JULY 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) $111,019,827 $54,040,433 OTHER LIABILITIES 2. Payments in Lieu of Taxes Fund $5,994,998 ($5,778,693) 1. Accounts Payable $16,773,495 ($4,735,256) 3. Rate Stabilization Fund 34,210, , Accrued Payments in Lieu of Taxes 7,445,705 (5,890,259) 4. Bond Principal & Interest Funds 28,601,051 14,021, City Dividend for Utility Ownership Payable 3,111, , Other Restricted/Designated Funds 3,545, , Commercial Paper Notes 65,500,000 (30,000,000) 6. Restricted/Designated Funds Total 66,357,352 14,971, Accrued Liabilities 14,180,774 2,267, Total Current Asset Funds 183,372,177 63,233, MBPP-BNSF-STB Settlement Receivables Less Uncollectible Allowance 23,856,173 3,752, Total Other Liabilities 107,011,319 (37,735,891) 9. Unbilled Revenue 20,674,616 6,587,826 CURRENT LIABILITIES - RESTRICTED ASSETS 10. Accrued Interest Receivable 761, , Current Portion of Long-Term Debt 19,480, Materials, Supplies & Fuel Inventory 13,245, , Accrued Interest 10,687,606 2,460, Plant Operation Assets 15,716,938 (1,285,213) 10. Other Current Liabilities 1,491,732 93, Other Current Assets 2,587, , Total Current Liabilities - Restricted Assets 31,659,338 2,554, Total Current Assets 260,214,336 73,386, Total Current Liabilities 138,670,657 (35,181,726) NONCURRENT ASSETS: NONCURRENT LIABILITIES: 15. Bond Reserve Funds 19,859,920 3,126, Bonds 1,150, Self Funded Benefits Reserve Fund (IBNP) 537,080 4, A Bonds 217,020, Segregated Funds 650, Bonds 75,525, Restricted Fund Total 21,047,489 3,131, A Bonds 167,800, Unamortized Debt Expense 2,634, , Bonds 99,575, Other Noncurrent Assets 2,778, , Bonds 121,205, ,205, Total Noncurrent Assets 26,460,737 3,826, Total Revenue Bonds 682,275, ,205, Less Current Maturities 19,480,000 0 CAPITAL ASSETS: 21. Less Unamortized Discounts/Premiums (70,156,221) (16,261,398) 22. Utility Plant in Service 1,548,857,032 27,090, Revolving Credit Agreement 0 (30,000,000) 23. Accumulated Depreciation & Amortization (760,889,588) (26,344,194) 23. Net Long Term Debt 732,951, ,466, Construction Work in Progress 130,879,999 15,775, Liabilities Payable from Segregated Funds 646, Total Capital Assets 918,847,443 16,521, Other Noncurrent Liabilities 532, Total Liabilities 872,800,451 72,284,672 DEFERRED OUTFLOWS OF RESOURCES: 26. Deferred Loss on Refunded Debt 14,203,827 (1,250,794) NET POSITION: 27. Net Investment in Capital Assets 131,192,364 (92,352,990) 28. Restricted for Debt Service 21,072,753 14,688, Restricted for Employee Health Insurance Claims 400,411 (534,640) 30. Unrestricted 194,260,364 98,399, Total Net Position 346,925,892 20,199, TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $1,219,726,343 $92,484, TOTAL LIABILITIES & NET POSITION $1,219,726,343 $92,484,579

11 STATEMENT OF CASH FLOWS JULY 2018 CURRENT MONTH YEAR-TO-DATE CASH FLOW FROM OPERATING ACTIVITIES: 1. Received from Sales to Customers and Users $33,925,284 $191,382, Paid to Suppliers for Goods & Services (20,599,412) (111,680,645) 3. Paid to Employees for Services (2,753,381) (19,271,423) 4. Cash Flow from Operating Activities (a) 10,572,491 60,430,118 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: 5. Payments in Lieu of Taxes (77,577) (12,807,676) 6. City Dividend for Utility Ownership Payments 0 (3,733,616) 7. Other Cash Flow from (used for) Non-capital Financing Activities (77,577) (16,541,291) CASH FLOWS FROM INVESTING ACTIVITIES: 9. Net (Purchases) Sales of Investments (2,898,604) (66,815,543) 10. Interest Income 190,757 1,111, Cash Flow from (used for) Investing Activities (2,707,847) (65,703,910) CASH FLOWS FROM CAPITAL FINANCING ACTIVITIES: 12. Acquisition and Construction of Capital Assets (7,842,608) (45,128,563) 13. Salvage on Retirement of Plant 6, , Cost of Removal of Property Retired (71,425) (1,394,120) 15. Debt Issuance Cost Paid 0 (538,146) 16. Debt Premiums Collected 0 19,612, Net Capital Contributions 86, , Net Proceeds form Issuance of Long-Term Debt 0 121,205, Principal Payments on Long-Term Debt (30,000,000) (60,000,000) 20. Interest Payments on Long-Term Debt (242,861) (13,321,757) 21. Cash Flow from (used for) Capital Financing Activities (38,063,668) 21,250, Net Increase (Decrease) in Cash and Cash Equivalents (30,276,601) (564,498) 23. Cash and Cash Equivalent Beginning of Period 53,154,290 23,442, Cash and Cash Equivalent End of Period (b) $22,877,689 $22,877,689 STATEMENT OF CASH FLOW FOOTNOTES (a) Reconciliation of operating income to cash flows from operating activities 1. Net Operating Revenue $13,893,488 $43,276, Noncash items included in operating income 4,373,363 30,561, Changes in Assets & Liabilities Increase/(Decrease) (7,694,360) (13,407,940) 4. Net cash flows from operating activities $10,572,491 $60,430,118 (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 JULY 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 $36,165,776 $38,932,392 $36,514,466 $192,525,241 $185,640,726 $188,543, Total Operating Expenses 22,272,288 24,993,379 23,451, ,249, ,494, ,686, Less Depreciation (4,281,209) (4,271,227) (4,261,948) (29,926,424) (29,652,476) (29,586,002) 4. Operating Expense Net of Depreciation 17,991,079 20,722,152 19,189, ,322, ,841, ,100, Net Operating Revenue for Debt Service 18,174,697 18,210,240 17,325,348 73,202,581 54,798,919 60,443, Interest Income (a) 295, , ,884 1,219,850 1,390, , Other Income Rate Stabilization Fund AVAILABLE FOR DEBT SERVICE 18,470,619 18,421,018 17,442,232 74,422,431 56,189,434 61,143, DEBT SERVICE (b) 4,133,317 3,987,031 3,514,177 26,045,571 26,193,487 24,599, DEBT SERVICE COVERAGE (a) Excludes interest from Rate Stabilization Fund. (b) Includes Bond Principal & Interest only. Page 9

13 INVESTMENT REPORT JULY 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE CASH - REVENUE FUND / WORKING FUND $882,264 $882,264 SHORT TERM FEDERAL INVESTMENT TRUST (STFIT) 9,024,428 9,024,428 REVENUE FUND Federated Treasury Obligations Fund * 1.540% 141, ,798 Natixis, New York Branch Commercial Paper 03/26/ /20/ % 2.322% 3,962,433 4,000,000 Anglesea Funding LLC Commercial Paper 03/29/ /20/ % 2.403% 4,952,400 5,000,000 Bank of China (Hong Kong) Ltd. Commercial Paper 04/20/ /21/ % 2.629% 5,305,329 5,365,000 Banco de Credito Comercial Paper 06/28/ /22/ % 2.520% 7,439,583 7,500,000 Torchmark Corporation Commercial Paper 06/28/ /20/ % 2.556% 7,423,573 7,500,000 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 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/ /15/ % 2.220% 7,435,425 7,500,000 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 Federal Home Loan Banks Bond 06/29/ /21/ % 2.350% 7,411,692 7,500,000 U.S. Treasury Note 06/28/ /15/ % 2.345% 7,376,979 7,500,000 Discount \ (Premium) 28,348 Total Revenue Fund 141, ,971, ,211,798 PILOT FUND Federated Treasury Obligations Fund * 1.540% 22,643 22,643 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 U.S. Treasury Note 02/20/ /30/ % 2.105% 1,083,869 1,090,000 Discount \ (Premium) 5,694 Total PILOT Fund $22,643 $5,972,355 $6,077,643 (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 JULY 2018 PURCHASE MATURITY CPN/DCNT (a) CASH PAR FUND / INVESTMENT DATE DATE RATE YIELD EQUIVALENTS SECURITIES VALUE BOND RESERVE FUNDS Federated Treasury Obligations Fund * 1.540% $172,921 $172,921 Federal Home Loan Banks Bond 09/01/ /28/ % 1.000% 490, ,000 Federal Home Loan Banks Bond 09/01/ /28/ % 1.000% 2,340,000 2,340,000 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 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) 78,745 Total Bond Reserve Funds 172,921 19,686,999 19,902,921 BOND PRINCIPAL & INTEREST FUNDS Federated Treasury Obligations Fund * 1.540% 4,150,284 4,150,284 Alpine Securitization LLC Commercial Paper 01/31/ /03/ % 1.949% 1,608,970 1,625,000 Ebury Finance LLC Commercial Paper 04/30/ /07/ % 2.335% 1,629,537 1,640,000 Federal Home Loan Banks Bond 11/30/ /08/ % 1.541% 1,623,415 1,630,000 Qualcomm Inc. Commercial Paper 06/29/ /28/ % 2.289% 1,623,806 1,630,000 Qualcomm Inc. Commercial Paper 06/29/ /28/ % 2.289% 2,077,077 2,085,000 MUFG Bank, Ltd., NY Branch Commercial Paper 07/26/ /28/ % 2.054% 1,641,909 1,645,000 Bedford Row Funding Corp Commercial Paper 03/29/ /29/ % 2.384% 2,034,388 2,055,000 Bedford Row Funding Corp Commercial Paper 03/29/ /29/ % 2.384% 1,633,451 1,650,000 U.S. Treasury Note 09/29/ /31/ % 1.310% 1,611,729 1,620,000 U.S. Treasury Note 10/31/ /31/ % 1.400% 1,621,263 1,630,000 MUFG Bank, Ltd., NY Branch Commercial Paper 04/30/ /31/ % 2.318% 2,023,969 2,040,000 First Abu Dhabi Bank Commercial Paper 05/31/ /31/ % 2.293% 1,625,473 1,635,000 First Abu Dhabi Bank Commercial Paper 05/31/ /31/ % 2.293% 2,023,142 2,035,000 Bayerische Landesbank, NY Branch 07/19/ /31/ % 2.075% 1,650,908 1,655,000 Discount \ (Premium) 21,729 Total Bond Principal & Interest Funds 11,143,984 17,457,066 28,725,284 RATE STABILIZATION FUND Federated Treasury Obligations Fund * 1.540% 115, ,032 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) 20,576 Total Rate Stabilization Fund $115,032 $34,095,692 $34,262,032 (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 JULY 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 * 1.540% $917,593 $917,593 Credit Suisse NY Commercial Paper 03/05/ /28/ % 2.269% 987,120 1,000,000 Discount \ (Premium) Total Self-Funded Health & Dental Claims Fund 917, ,120 1,917,593 SELF-FUNDED HEALTH & DENTAL RESERVE FUND (INCURRED BUT NOT PRESENTED) Federated Treasury Obligations Fund * 1.540% 8,019 8,019 Federal Farm Credit Banks Bond 01/12/ /14/ % 1.781% 527, ,000 Discount \ (Premium) 1,382 Total Self-Funded Health & Dental Reserve Fund 8, , ,019 SEGREGATED ACCOUNT Federated Treasury Obligations Fund * 1.540% 278, ,526 General Electric Company Commercial Paper 04/23/ /17/ % 2.301% 371, ,000 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 Discount \ (Premium) 758 Total Segregated Account 278,526 1,842,348 2,153,526 Cost of Issuance Account Federated Treasury Obligations Fund * 1.540% 170, ,481 Discount \ (Premium) Total Cost of Issuance Account 170, ,481 TOTAL $22,877,689 $181,541,977 $205,865,989 (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