Water Operations Current Month - November 2018

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Myron Davis
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1 November 2018

2 Water Operations Current Month - November 2018 $8.0 Net Operating Revenue (Net of Bad Debt) $8.1 $8.6 $ Volumes Billions of Gallons Sold $ $4.0 $ Actual Net Operating Budget Revenue Prior Year Actual Thousands Budget of Gallons Sold Prior Year $8.0 $6.0 Operating Expenses & Other (Includes Nonoperating Revenues / Expenses) $7.7 $0.4 $8.2 $0.6 $7.7 $0.5 $0.5 $0.4 $0.3 Net Income $0.4 $0.4 $0.3 $4.0 $7.3 $7.6 $7.2 $0.2 $2.0 $0.1 Actual Actual Budget Budget Prior Prior Year Year Nonoperating Revenues / Expenses Actual Net Budget Income Prior Year 2

3 Water Operations Executive Summary November 2018 Revenue: November Water sales revenues of $8.1 million were unfavorable to budget by $.5 million, or 5.5%, as follows: Decreased metered sales of water due to 5.7% decrease in volumes vs. budget Millions $ (0.5) November Water sales revenues of $8.1 million were favorable to prior year by $.1 million, or 1.4%, as follows: Increased metered sales of water due to 3.1% increase in volumes vs. prior year coupled with 2.5% increase to Commodity component of rates Volumes: Water volumes were unfavorable to budget by 5.7% and favorable to prior year by 3.1% Operating Expenses & Other: November operating and other expenses of $7.7 million were favorable to budget by $.5 million, or 6.2%, as follows: Decreased Customer Accounting and Collecting expense due primarily to reduced employee count in Customer Service $ 0.2 (7 less than budget) and Credit Services (3 less than budget) Decreased Distribution maintenance expense due primarily to reduced WIR water service reconnections/ replacements $ 0.2 Decreased Distribution Operating expense due primarily to Removing and Resetting meters $ 0.1 Decreased Purification operating expense due to reduced volumes $ 0.1 Other income interest income on cash balances $ 0.2 Increased Admin & General expense due to adjustment related to amounts capitalized to jobs exceeding $2 million in cost $ (0.4) (adjustment occurs one month in arrears) All other, net $ 0.1 November operating and other expenses of $7.7 million were virtually equal to prior year, with variances that served to offset one another, as follows: Decreased Customer Accounting and Collecting expense due primarily to reduced employee count in Meter Reading (3 less than prior year) and Credit Services (3 less than prior year) $ 0.1 Other income interest income on cash balances $ 0.2 Increased Admin & General expense due to adjustment related to amounts capitalized to jobs exceeding $2 million in cost (adjustment occurs one month in arrears) $ (0.3) Increased interest expense due to 2018 bond $ (0.1) All other, net $ 0.1 Net Income: November net income of $.4 million is virtually equal to budget and $.1 million favorable to prior year. $ 0.1 3

4 Water Operations Year-To-Date November 2018 Net Operating Revenue (Net of Bad Debt) 35.0 Volumes Billions of Gallons Sold $120.0 $110.0 $111.5 $114.6 $ $100.0 $90.0 $80.0 $70.0 $ $50.0 Actual Net Operating Budget Revenue Prior Year Actual Thousands Budget of Gallons Sold Prior Year $120.0 $100.0 $80.0 $60.0 $40.0 Operating Expenses & Other (Includes Nonoperating Revenues / Expenses) $87.8 $5.5 $82.3 $93.5 $6.1 $89.5 $6.2 $87.4 $83.3 $26.0 $25.0 $24.0 $23.0 $22.0 $21.0 $23.7 Net Income $21.1 $24.9 Actual Actual Budget Budget Prior Prior Year Year Nonoperating Revenues / Expenses $19.0 Actual Net Budget Income Prior Year 4

5 Water Capital Expenditures Year-To-Date November 2018 ($ in millions) The Water Department's November year to date capital expenditures of $44.7 million are $8.4 million less than budget, as follows: $60.0 $50.0 $40.0 $30.0 $53.1 $6.6 $44.7 $2.1 $17.7 $15.9 $2.6 $11.0 $17.4 $20.2 $10.3 $6.5 $11.4 $11.6 Cast Iron Main Abandon/Replace Buildings, Land, Equip Other $35.5 Other Mains & Distribution Millions Over (Under) Budget Florence Minne Lusa high service pump station improvements (timing) $ (0.6) Florence Basin 1 Rehabilitation (timing) $ (0.6) Florence Chemical feed building (AMSEI improvements & feed system improvement (timing ahead of schedule) $ 1.8 Florence All other $ (0.5) Platte South Replace wellfield electrical $ (0.6) design & construction (timing) Platte South Replace Valves & Operators timing shifted to 2019 $ (0.3) Platte South Fluoride fill station #2 $ (0.3) Platte South All other $ (0.5) Platte West Water air line replacement (timing) $ (0.1) Platte West All other $ (0.1) Mains Cast Iron (Abandon/Replace) $ (4.9) Mains All other $ 2.9 Other Mains & Distribution All Other $ (0.1) Pumping & Purification West Dodge zone 3 pumping station design (timing) Pumping & Purification West Dodge zone 3 pumping station construction (timing) $ (0.4) $ (2.5) Construction Machines (timing) $ (0.5) All other, net $ (1.1) $ (8.4) 5

Cash Position Water Department November 30, 2018 On November 30, 2018, the Water Department cash and restricted funds totaled $139.8 million; unrestricted cash totaled $90.

5 Less Restricted Cash: 2015 Bond Project Fund (proceeds remaining) $ 9.0 $ - $ (9.0) 2018 Bond Project Fund (proceeds remaining) $ - $ 31.9 $ 31.

6 Cash Position Water Department November 30, 2018 On November 30, 2018, the Water Department cash and restricted funds totaled $139.8 million; unrestricted cash totaled $90.7 million, as depicted below: Water Department - Total Cash ($ in millions) 12/31/ /30/2018 Change Cash Per Balance Sheet $ 89.3 $ $ 50.5 Less Restricted Cash: 2015 Bond Project Fund (proceeds remaining) $ 9.0 $ - $ (9.0) 2018 Bond Project Fund (proceeds remaining) $ - $ 31.9 $ 31.9 Bond Sinking Fund , 2015 & 2018 bonds (To pay interest & principal payments) $ 1.5 $ 14.0 $ 12.5 Bond Reserve Fund - Deposit in Lieu of Insurance (2012 bonds) $ 3.0 $ 3.0 $ - Platte West Environmental Fund $ 0.2 $ 0.2 $ - Subtotal Restricted Cash $ 13.7 $ 49.1 $ 35.4 Unrestricted Cash $ 75.6 $ 90.7 $ 15.1 Components of Unrestricted Cash Customer Deposits and Credit Balances $ 4.3 $ 4.9 $ 0.6 Sewer Fees Collected but not Remitted $ 12.9 $ 13.9 $ 1.0 Customer Advances for Construction $ 18.3 $ 24.9 $ 6.6 WIR Funds Collected but not Expended $ 26.2 $ 31.4 $ 5.2 Cash Reserves $ 13.9 $ 15.6 $ 1.7 Days Cash on Hand (Unrestricted Cash) Cash Required to meet 180 Day Goal $ 38.2 $ 37.0 Unrestricted Cash Balance Over (Short) of 180 Day Goal $ 37.5 $

7 Gas Operations Current Month - November 2018 $12.0 $8.0 $10.4 Net Operating Revenue (Net of Gas Costs & Bad Debt) $8.7 $ Volumes Dth Sold $6.0 $ $ Actual Net Operating Budget Revenue Prior Year Actual Dth Budget Sold Prior Year $8.0 $7.0 $6.0 Operating Expenses & Other (Includes Nonoperating Revenues / Expenses) $6.5 $6.4 $6.4 $0.1 $5.0 $4.0 $3.9 Net Income $5.0 $4.0 $3.0 $2.0 $1.0 $6.5 $6.3 $6.4 $3.0 $2.0 $1.0 $2.3 $1.3 Actual Actual Budget Budget Prior Prior Year Year Nonoperating Revenues / Expenses 7

8 Gas Operations Executive Summary November 2018 Revenue: November Gas sales net revenues of $10.4 million were favorable to budget by $1.7 million, or 19.2%, as follows: Increased net revenues due primarily to increased margin associated with 29.9% favorable volume variance $ Millions 1.7 November Gas sales net revenues of $10.4 million were favorable to prior year by $2.7 million, or 34.6%, as follows: Increased net revenues due primarily to increased margin associated with 36.0% favorable volume variance Volumes: Gas volumes were favorable to budget by 29.9% and favorable to prior year by 36.0% Operating Expenses & Other: November operating and other expenses of $6.5 million were unfavorable to budget by $.1 million, as follows: $ 2.7 Increased Admin & General expense due primarily to adjustment related to amounts capitalized to jobs exceeding $2 million in cost (adjustment occurs one month in arrears) Decreased Customer Accounting and Collecting expense due primarily to reduced employee count in Customer Service (7 less than budget) and Credit Services (3 less than budget) Other income interest income on cash balances $ (0.5) $ 0.2 $ 0.2 November operating and other expenses of $6.5 million were unfavorable to prior year by $.1 million, as follows: Increased Admin & General expense due primarily to adjustment related to amounts capitalized to jobs exceeding $2 million in cost (adjustment occurs one month in arrears) Decreased Customer Accounting and Collecting expense due primarily to reduced employee count in Meter Reading (3 less than prior year) and Credit Services (3 less than prior year) Other income interest income on cash balances $ (0.2) All other, net $ (0.2) Net Income: November's net income of $3.9 million is $1.6 million favorable to budget and $2.6 million favorable to prior year $ $

9 Gas Operations Year-To-Date November 2018 $100.0 $95.0 $90.0 $85.0 $80.0 $75.0 $70.0 $65.0 $96.3 Net Operating Revenue (Net of Gas Costs & Bad Debt) $85.1 $ Volumes Dth Sold $60.0 Actual Net Operating Budget Revenue Prior Year Actual Dth Budget Sold Prior Year $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $(10.0) Operating Expenses & Other (Includes Nonoperating Revenues / Expenses) $68.4 $72.0 $67.0 Nonoperating Revenues / Expenses $30.0 $25.0 $15.0 $5.0 $27.9 Net Income $13.1 $18.0 Actual Net Budget Income Prior Year 9

10 Gas Capital Expenditures Year-To-Date November 2018 ($ in millions) The Gas Department's November year to date capital expenditures of $36.1 million are $9.3 million less than budget, as follows: $50.0 $45.0 $40.0 $35.0 $30.0 $25.0 $15.0 $5.0 $36.1 $4.6 $2.6 $1.1 $45.4 $4.4 $7.5 $2.3 $37.6 $4.1 $3.0 $1.5 $12.6 $10.7 $11.6 $16.2 $18.6 $18.3 Cast Iron Mains & Services Replace Other Mains & Distribution Information Technology Buildings, Land, Equip Vehicles, Equip, Other Millions Over (Under) Budget Buildings, Land and Equipment 117th & Fort Propane Air $ (1.1) Logging, casing, sleeve, water pump replacement (timing) Buildings, Land and Equipment LNG boil off compressor $ (0.9) (cost less than budget) Buildings, Land and Equipment Remodel & Design Costs $ (0.6) Operating Center & Downtown Buildings, Land and Equipment LNG fence replacement $ (0.4) and detection systems (timing) Buildings, Land and Equipment Perimeter fence $ (0.3) replacement at Operating center Buildings, Land and Equipment LNG Delaval $ (0.3) oil turn down unit (timing) Buildings, Land and Equipment 117th & Fort $ (0.2) Propane cavern reduction project (timing) Buildings, Land and Equipment LNG tank modifications $ (0.2) Buildings, Land and Equipment all other $ (0.9) Information Technology SAP Hana $ (0.5) Information Technology SAP Invoice Redesign $ (0.5) Information Technology All Other $ (0.2) Cast Iron Mains and Services (Abandon/Replace) $ (2.4) Other Mains & Distribution $ (1.0) Motor Vehicles (timing) $ (1.0) Furniture, Equipment All Other $ 1.2 $ (9.3) 10

Cash Position Gas Department November 30, 2018 On November 30, 2018, the Gas Department cash and restricted funds totaled $124.0 million; unrestricted cash totaled $105.7 million, as depicted below.

11 Cash Position Gas Department November 30, 2018 On November 30, 2018, the Gas Department cash and restricted funds totaled $124.0 million; unrestricted cash totaled $105.7 million, as depicted below. Gas Department - Total Cash ($ Millions) 12/31/ /30/2018 Change Cash per Balance Sheet $ 95.6 $ $ 28.4 Less Restricted Cash: 2018 Bond Project Funds (proceeds remaining) $ - $ 17.8 $ 17.8 Bond Sinking Fund-2018 (To pay interest & principal payments) $ - $ 0.5 $ Bond Closing Fund (additional issuance costs) $ - $ - $ - Subtotal Restricted Cash $ - $ 18.3 $ 18.3 Unrestricted Cash $ 95.6 $ $ 10.1 Components of Unrestricted Cash Customer Deposits and Credit Balances $ 21.7 $ 19.4 $ (2.3) Customer Advances for Construction $ 0.5 $ 1.0 $ 0.5 Cash Reserves $ 73.4 $ 85.3 * $ 11.9 Days Cash on Hand (Unrestricted Cash) Cash Required to meet 180 Day Goal $ 80.1 $ 88.3 Unrestricted Cash Balance Over (Short) of 180 Day Goal $ 15.5 $ 17.4 *Note: Cash reserves were negatively impacted by $5.5 million due to the fact that cumulative amounts spent on gas infrastructure projects exceed the cumulative revenue collected. 11

12 Gas & Water Combined Current Month - November 2018 $25.0 Net Operating Revenue (Net of Gas Costs & Bad Debt) Volumes (Gas: Dth Sold; Water: Billions of Gallons Sold) $15.0 $18.5 $17.3 $8.1 $8.6 $15.7 $ $5.0 $10.4 $8.7 $ Gas Water Actual Budget Actual Budget Prior Prior Year Year Gas Water $15.0 $5.0 Operating Expenses & Other (Includes Nonoperating Revenues / Expenses) $14.2 $7.7 $14.6 $14.1 $8.2 $7.7 $6.5 $6.4 $6.4 $5.0 $4.0 $3.0 $2.0 $1.0 $4.3 $0.4 $3.9 Net Income $2.7 $0.4 $2.3 $1.6 $0.3 $1.3 Gas Water Gas Water 12

13 Gas & Water Combined Year-To-Date November 2018 $250.0 $200.0 $150.0 Net Operating Revenue (Net of Gas Costs & Bad Debt) $207.8 $199.7 $199.4 $111.5 $114.6 $ Volumes (Gas: Dth Sold; Water: Billions of Gallons Sold) $100.0 $50.0 $96.3 $85.1 $ Gas Water Actual Budget Actual Budget Prior Prior Year Year Gas Water $200.0 $150.0 $100.0 $50.0 Operating Expenses & Other (Includes Nonoperating Revenues / Expenses) $156.2 $87.8 $165.6 $93.5 $156.5 $89.5 $68.4 $72.0 $67.0 Gas Water $60.0 $50.0 $40.0 $30.0 $51.6 $23.7 $27.9 Net Income $34.1 $21.1 $13.1 $42.9 $24.9 $18.0 Gas Water 13

14 Personnel As of November 30, 2018 (Water & Gas Combined) Actual 2018 Budget 2017 Actual 2018 Actual 2018 Budget 2017 Actual Full Time Part Time The active payroll for November was $5.5 million, compared with $5.7 million in budget and $5.6 million in prior year. At November 30th, there were 808 regular full time employees, compared with 826 in budget and 824 at November 30, At November 30th, there were 7 regular part time employees, compared with 8 in budget and 7 at November 30,

15 Personnel Trend Through November 2018 (Water & Gas Combined) 860 Full Time Employees Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 Actual 2018 Budget 2017 Actual 15

16 Overtime Hours Trend Through November 2018 (Water & Gas Combined) 8,000 7,442 7,000 6,000 5,000 6,526 4,891 5,447 4,546 6,347 4,725 5,829 4,850 6,931 5,141 7,132 5,845 6,718 6,496 7,118 5,996 6,253 5,571 5,775 6,138 5,465 4,761 4,000 3,000 2,000 1,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2018 Actual 2018 Budget 2017 Actual 16

17 Overtime Hours Trend (continued) November 2018 (Water & Gas Combined) Overtime hours for the month totaled 6,137.6 as compared with 5,465 in budget and 6,025 in prior year. Overtime hours were greater than budget, as follows: Favorable (Unfavorable) vs. Budget Construction (1) (510.6) Field Services (2) (314.0) Water Distribution (3) (194.5) All other, net (672.6) (1) Overtime associated with staff shortages (7 below budget) and time sensitive projects (2) Overtime associated with covering vacation for other Field Services personnel (3) Overtime due primarily to water main breaks, hydrant/valve maintenance activities and staffing vacancies (3 below budgeted levels) 17

METROPOLITAN UTILITIES DISTRICT Inter-Department Communication. December 6, Subject: REPORT ON INCOME AND FINANCE FOR OCTOBER 2013

METROPOLITAN UTILITIES DISTRICT Inter-Department Communication December 6, 2013 Subject: REPORT ON INCOME AND FINANCE FOR OCTOBER 2013 To: From: Committee on Accounts, Expenditures, Finance and Rates cc: