TAMPA WATER Supplying Water To The Region AGENDA ITEM IS DATE: February 1, 27 TO: J etr y L. Maxwell, General Manager FROM: Koni M. Cassini, Director of Finance and Administration" SUBJECT: Financial Statement and Fund Analysis for November & December 26 SUMMARY: RECOMMENDATION: DISCUSSION: The attached Statement of Revenues and Expenses summarizes Agency revenues and expenses for the second and third month of die 26/27 fiscal year November and December 26. Also included are true-up reports and management statistics for the same time period. Status Report Uniform Rate - Statement of Revenue and Expenses Operating income consists of water sales (fixed and variable components), sales from the Tampa Bypass Canal and the board-approved balance carried forward from the previous year through the Rate Stabilization Fund. Other Revenues are primarily interest income which has improved in the current year due to rising interest rates. Water Treatment Chemicals and Power costs normally lag budgeted amounts by one month. Professional Service Expense typically runs two months behind the budgeted costs due to the nature of their billing process. Professional Services are normally billed in the month after services are performed and then are subjected to a thorough review by the project managers. This results in approximately two months from completion of services to time of payment. This billing lag is eliminated at the end of the fiscal year when the books are held open to accrue all invoices pertaining to services received in that fiscal year. In addition, there are several activities which were Board approved in the previous year, but are in the process of completion such activities associated with the Emergency Infrastructure/Maintenance Building, for the desal remediation activities, the Cypress Creek water surface management project and settlement of any potential insurance claims. The Board approved the carry forward of these amounts at the August 26 meeting. Those amounts have been appropriately carried over for the remaining activities which will take place throughout the coming year. The "Encumbrance" balance shown on the bottom of the financial statements represents the amount of open purchase orders (committed funds and blanket purchase orders) as of the end of the month including purchase orders carried forward from the previous year. Although the encumbrance is presented for informational purposes only, it gives a projected contractual commitment against current year funds. For the November and December financial statements there are many purchase orders established at the beginning of the year that will be spent through 26/27 and monthly revenue will be collected through the year to offset that expense, however, the revenue is only shown as earned monthly. Significant encumbrances include Water Treatment Chemicals, Power,
Jerry L. Maxwell February 1,26 Page 2 Professional Services and Water for Resale. Professional service tasks frequently carryover beyond the end of a fiscal year, in which case the applicable open purchase orders and the associated budget dollars are carried into the next fiscal year to allow for completion of those tasks. Capital Expenditures will include expenditures for agency capital projects as well as expenditures associated with board-approved Joint Project Agreements. Reimbursements from member governments under Joint Project Agreements are credited back to the appropriate expense account so that the net impact on the agency's budget will be zero at conclusion of the project. Reserve activity reflects board-approved funding for projects and the anticipated grant funds from the Southwest Florida Water Management District. The most significant is the anticipated payments for Seawater Desalination and is further explained in the footnotes. Potential Member Year End True-up To assist our Members in their planning and budgeting, we also present a monthly schedule that shows the projected true-up adjustment due in October for the 26/27 year end at September 3, 27. Each member's amount is based on actual year-to-date demand. Fixed Costs are billed to the Members through the year based on their pro-rata share of the prior year's demand. As required in the Master Water Supply Contract, the true-up is calculated to adjust each Member's share of the annual Fixed Costs to their prorata share based on the actual demand for the current year. This true-up adjustment results in amounts due to/from each member with no net revenue impact to die agency. When a member's demands vary gready from year to year, the true-up can be significant. Therefore, staff developed this reconciliation to assist the member governments in preparing for the resulting year end billing. Before the agency gets near our year-end the difference projected on the true-up table will be communicated separately to each member government to again alert them to this year end hilling potential. Management Statistics - Staff has reproduced the Management Statistics from our Management and Performance Audit completed in March of 2 and has revised the appropriate statistics for November and December 26. We will continue to produce this information for the Board and note any information of significance. T.\Finance_Admin\agenda\27 Agenda Items\Feb 27\fmslatements.doc
TAMPA BAY WATER UNIFORM RATE Statement of Revenues and Expenditures November 3, 26 OPERATING INCOME Current Month Actual Current Month Percent of $ Variance Year to Date Actual Year to Date Percent of $ Variance Water Sales - Fixed Water Sales - Variable Tampa ByPass Canal Rate Stabilization (Note 1) 9,963,4 2,3,37 133,435 6,895,284 9,963,4 1,967,682 48,438 1,215,786 1.% 11.81% 275.47%.% 35,688 84,996 5,679,499 19,926,7 4,145,533 212,278 7,92,737 19,926,7 3,935,364 96,877 2,431,572 1.% 15.34% 219.12% 325.1% 21,169 115,41 5,471,166 Total Water Sales 18,995,93 13,194,91 143.96% 5,8,183 32,186,555 26,389,819 121.97% 5,796,735 OPERATING AND ADMINISTRATIVE EXPENSES: FIXED EXPENSE: Salaries & Wages Materials & Supplies Members Water Quality costs Professional Services Repairs & Other Services Rent & Insurance 912,637 95,489 3,25 455,643 118,341 894,616 888,31 176,1 3,25 2,872,526 31,563 162,994 12.74% 54.22% 1.% 15.86% 39.24% 548.86% 24,328-8,612-2,416,883-183,223 731,622 1,67,964 173,19 6,5 591,693 176,81 986,211 1,776,619 352,21 6,5 5,745,52 63,126 325,989 9.51% 49.17% 1.% 1.3% 29.19% 32.53% -168,655-179,11-5,153,359-427,46 66,222 Total Fixed Expense 2,56,976 4,431,743 56.57% -1,924,768 3,595,637 8,863,487 4.57% -5,267,849 VARIABLE EXPENSE: Water Treatment Chemicals Power/Electricity Water for Resale 398,163 71,77 44,772 72,775 1,182,174 82,733 56.66% 6.12% 54.12% -34,61 1-471,467-37,961 64,48 723,71 44,772 1,45,55 2,364,348 165,467 43.% 3.58% 27.6% -81,142-1,641,277-12,695 Total Variable Expense 1,153,642 1,967,682 58.63% -814,39 1,372,251 3,935,364 34.87% -2,563,113 OTHER INCOME: Interest Miscellaneous Litigation Recoveries Grants (Note 2) 1,66,41 2,686-1,724 518,83 1,69, 25.54%.%.%.% 547,571 2,686-1,691,724 1,55,749-3,566-1,724 1,37,66 3,38, 145.11%.%.%.% 468,89-3,566-3,381,724 Total Other Income 1,67,363 2,28,83 48.32% -1,141,467 1,5,46 4,417,66 33.97% -2,917,2 OTHER EXPENDITURES: Debt Service (Note 3) Capital Expenditures 1,121,852 265,18 8,497,86 351,178 13.2% 75.49% -7,375,954-86,7 7,659,419 271,64 16,995,612 72,356 45.7% 38.67% -9,336,193-43,751 Total Other Expenditures 1,386,959 8,848,984 15.67% -7,462,24 7,931,24 17,697,966 44.81% -9,766,944 RESERVES: Renewal & Replacement Reserve Operations & Maintenance Reserve Rate Stabilization Fund Reserve for Bond Coverage (Note 1) Capital Improvement Funding 58,373 81,27 3,333 117,474 58,373 81,27 3,333 28,333-195,917 1.%.%.%.%.% -28,333 313,391 116,747 162,414 6,667 232,473 116,747 162,414 6,667 416,667-391,833 1.%.%.%.%.% -416,667 624,37 Total Reserve Funding 26,388 155,33 167.63% 15,58 518,31 31,661 166.84% 27,64 Excess Revenue over Expenditures/ ( Expenditures over Revenue) 14,754,49 14,754,49 2,269,81 2,269,81 Encumbrances as of 11/3/26 49,791,517 Note 1 - Rate Stabilization budget includes transfers approved by the Board of $6,224,31 per 27 budget, $1,, for CCWF Surface Water Management Project $2,5, approved for bond coverage and $5,865,398 for carryover of open purchase orders from 26 to 27.Rate Stabilization actual does not include monthly amortization of bond coverage. That amount will be recognized in actuals only if needed to meet covenants. Note 2 - Grant Revenue budget consists of $2,28, budgeted to be received from SWFWMD upon meeting certain conditions related to operation of the desalination facility. Actual grant revenues will not be billed and recognized in the financial statements until those conditions are met. Note 3 - Debt service budget includes a $2,28, principal payment on the 22 Variable Rate bonds which is budgeted to be made when that amount is received from the SWFWMD grant. This amount will not appear in actuals until grant funds are collected and a portion of the bonds are redeemed Actual debt service will also vary from budget due to the impact of the 26 refunding which occurred after the budget was prepared. Note 4 - Interest earned on funds stays in the fund until the Board approves an alternative use. Transfer in of capital improvement funding for approved project costs will be recorded as project encumbrances are recorded. T:\Finance\MUNSON MAZZOCCHI\AGENDA\FY 27\FINANCIALS\ UNITARY-NOVEMBER.XLS 2/1/27 5:26 PM
TAMPA BAY WATER UNIFORM RATE Statement of Revenues and Expenditures December 31, 26 OPERATING INCOME Current Month Actual Current Month Percent of $ Variance Year to Date Actual Year to Date Percent of $ Variance Water Sales - Fixed Water Sales - Variable Tampa By-Pass Canal Rate Stabilization (Note 1) 9,963,4 2,28,7 127,587 518,669 9,963,4 1,967,682 48,438 1,465,786 1.% 13.7% 263.4%.% 6,388 79,148-947,117 29,889,11 6,173,63 339,864 8,421,46 29,889,11 5,93,46 145,315 3,897,357 1.% 14.58% 233.88% 216.8% 27,557 194,549 4,524,49 Total Water Sales 12,637,329 13,444,91 93.99% -87,58 44,823,884 39,834,729 112.52% 4,989,155 OPERATING AND ADMINISTRATIVE EXPENSES: FIXED EXPENSE: Salaries & Wages Materials & Supplies Members Water Quality costs Professional Services Repairs & Other Services Rent & Insurance 744,914 79,539 3,25 2,472,823 148,92 46,47 888,31 176,725 3,25 3,122,526 3,938 162,994 83.86% 45.1% 1.% 79.19% 49.49% 28.47% -143,396-97,186-649,72-152,18-116,588 2,352,877 252,729 9,75 3,64,516 325,1 1,32,617 2,664,929 528,926 9,75 8,867,577 94,65 488,983 88.29% 47.78% 1.% 34.56% 35.95% 211.18% -312,51-276,197-5,83,61-579,64 543,634 Total Fixed Expense 3,522,853 4,681,743 75.25% -1,158,891 7,118,49 13,545,23 52.55% -6,426,74 VARIABLE EXPENSE: Water Treatment Chemicals Power/Electricity Water for Resale 434,59 486,629 78,236 72,775 1,182,174 82,733 61.84% 41.16% 94.56% -268,185-695,544-4,497 1,38,998 1,29,7 123,8 2,18,325 3,546,521 248,2 49.28% 34.11% 49.56% -1,69,327-2,336,821-125,192 Total Variable Expense 999,455 1,967,682 5.79% -968,227 2,371,76 5,93,46 4.18% -3,531,34 OTHER INCOME: Interest Miscellaneous Litigation Recoveries Grants (Note 2) 351,735-54,184 518,83-833,423 67.79%.%.%.% -167,95-54,184 833,423 1,857,484-57,75-1,724 1,556,49 5,7, 119.34%.%.%.% 3,994-57,75-5,71,724 Total Other Income 297,551-314,593-94.58% 612,144 1,798,11 6,626,49 27.13% -4,828,479 OTHER EXPENDITURES: Debt Service (Note 3) Capital Expenditures 11,988,467 237,375 5,974,383 351,178 2.66% 67.59% 6,14,84-113,83 19,647,886 58,98 25,493,418 1,53,534 77.7% 48.31% -5.845,532-544,554 Total Other Expenditures 12,225,842 6,325,561 193.28% 5,9,281 2,156,866 26,546,952 75.93% -6,39,86 RESERVES: Renewal & Replacement Reserve Operations & Maintenance Reserve Rate Stabilization Fund Reserve for Bond Coverage (Note 1) Capital Improvement Funding (Note 4) 58,373 81,27 3,333 58,373 81,27 3,333 28,333-195,917 1.%.%.%.%.% -28,333 195,917 175,12 243,621 1, 232,473 175,12 243,622 1, 625, -587,75 1.%.%.%.%.% -625, 82,223 Total Reserve Funding 142,914 155,33 92.1% -12,417 661,215 465,991 141.89% 195,223 Excess Revenue over Expenditures/ ( Expenditures over Revenue) -3,956,184-3,956,184 16,313,618 16,313,618 Encumbrances as of 12/31/26 47,597,86 Note 1 - Rate Stabilization budget includes transfers approved by the Board of $6,224,31 per 27 budget, $1,, for CCWF Surface Water Management Project $2,5, approved for bond coverage and $5,865,398 for carryover of open purchase orders from 26 to 27.Rate Stabilization actual does not include monthly amortization of bond coverage. That amount will be recognized in actuals only if needed to meet covenants. Note 2 - Grant Revenue budget consists of $2,28, budgeted to be received from SWFWMD upon meeting certain conditions related to operation of the desalination facility. Actual grant revenues will not be billed and recognized in the financial statements until those conditions are met. Note 3 - Debt service budget includes a $2,28, principal payment on the 22 Variable Rate bonds which is budgeted to be made when that amount is received from the SWFWMD grant. This amount will not appear in actuals until grant funds are collected and a portion of the bonds are redeemed. Actual debt service will also vary from budget due to the impact of the 26 refunding which occurred after the budget was prepared. Note 4 - Interest earned on funds stays in the fund until the Board approves an alternative use. Transfer in of capital improvement funding for approved project costs will be recorded as project encumbrances are recorded. T:\Finance\MUNSON MAZZOCCHI\AGENDA\FY 27\FINANCIALS\ UNITARY-DECEMBER.XLS 2/1/27 5:27 PM
POTENTIAL MEMBER YEAR END TRUE-UP WITH YEAR-TO-DATE DEMAND FISCAL YEAR 27 - THROUGH NOVEMBER 3, 26 FY6 FY7 + /- Oct-6 Nov-6 Dec-6 Jan-7 Feb-7 Mar-7 Apr-7 May-7 Jun-7 Jul-7 Aug-7 Sep-7 ST PETE 97.2 89.28 11,683.95 1,86.48 (9,823.47) PINELLAS 2,75.86 1,877.54 24,25.48 3,953.4 (2,72.8) TAMPA (Morris Br) - 239.45 1,768.32 239.45 (1,528.87) Monthly Demand HILLSBOROUGH 1,827.97 1,61.99 18,881.19 3,438.96 (15,442.23) PASCO 924.76 88.38 9,217.45 1,733.14 (7,484.31) NEW PORT RICHEY 95.99 86.21 1,89.98 182.2 (97.78) TOTALS 5,894.78 5,512.85 66,666.37 11,47.63 (55,258.74) 182.65 MGD 187.1 MGD 4.36 MGD FY7 YTD MGD %ofytd FY 6 MGD % of FY6 Fixed billed fy7 Actual fixed based on % of ytd Potential True-up 3.5 16.31% 32.1 17.53% $ 2,953,729 $ 19,498,496 $ (1,455,232.41) 64.81 34.66% 65.82 36.4% $ 43,85,736 $ 41,433,47 $ (1,652,689.46) 3.93 2.1% 4.84 2.65% $ 3,168,261 $ 2,59,522 $ (658,739.68) 56.38 3.15% 51.73 28.32% $ 33,862,43 $ 36,41,531 $ 2,179,11.58 28.41 15.19% 25.25 13.83% $ 16,528,636 $ 18,163,927 $ 1,635,291.14 2.99 1.6% 2.99 1.64% $ 1,957,252 $ 1,99,521 $ (47,731.17) 187.1 1% 182.64 1% $ 119,556,45 $ 119,556,45 $ () T:\Finance\Finance Draft Agenda ReportsVFY 27\27-2 (Feb 27 Board Meeting)\POTENTIAL TRUE-UP 1136.xls
POTENTIAL MEMBER YEAR END TRUE-UP WITH YEAR-TO-DATE DEMAND FISCAL YEAR 27 - THROUGH DECEMBER 31, 26 FY6 FY7 + /- Oct-6 Nov-6 Dec -6 Jan-7 Feb-7 Mar-7 Apr-7 May-7 Jun-7 Jul-7 Aug-7 Sep-7 ST PETE 97.2 89.28 94.29 11,683.95 2,764.77 (8,919.18) PINELLAS 2,75.86 1,877.54 1,95.1 24,25.48 5,858.5 (18,166.98) TAMPA (Morris Br) - 239.45 368.69 1,768.32 68.14 (1,16.18) Monthly Demand HILLSBOROUGH 1,827.97 1,61.99 1,547.51 18,881.19 4,986.47 (13,894.72).'I PASCO 924.76 88.38 771.34 9,217.45 2,54.48 (6,712.97) NEW PORT RICHEY 95.99 86.21 83.89 1,89.98 266.9 (823.89) TOTALS 5,894.78 5,512.85 5,58.82 66,666.37 16,988.45 (49,677.92) 182.65 MGD 184.66 MGD 2.1 MGD FY7 YTD MGD %ofytd FY 6 MGD % of FY6 Fixed billed fy7 Actual fixed based on % of ytd Potential True-up 3.5 16.27% 32.1 17.53% $ 2,953,729 $ 19,457,41 $ (1,496,687.74) 63.68 34.49% 65.82 36.4% $ 43,85,736 $ 41,229,134 $ (1,856,61.84) 6.61 3.58% 4.84 2.65% $ 3,168,261 $ 4,279,779 $ 1,111,517.72 54.2 29.35% 51.73 28.32% $ 33,862,43 $ 35,92,232 $ 1,229,82.21 27.22 14.74% 25.25 13.83% $ 16,528,636 $ 17,625,253 $ 1,96,616.34 2.89 1.57% 2.99 1.64% $ 1,957,252 $ 1,872,66 $ (84,646.7) 184.66 1% 182.64 1% $ 119,556,45 $ 119,556,45 $ () T:\Finance\Finance Draft Agenda ReportsVFY 27\27-2 (Feb 27 Board Meeting)\POTENTIAL TRUE-UP 12316.xls
Management Statistics Based on Information Available Month Ending 11/3/6 1. Labor as a percentage of Controllable O&M budget (As November, 26) 2. Inventory Turnover rate for year ending 9/3/6 3. Employee Turnover rate (12/1/5-11/3/6) 4. Planned Maintenance time vs. Corrective Maintenance time Month of November 26 December 25 - November 26 5. Full Time Equivalents (FTEs)/Million Gallons Month of November 26 December 25 - November 26 6. Dollars/Million Gallons 7. Regulatory violation occurrences November 26 8. Safety - lost time accidents November 26 9. Completion of major projects on time and within budget 16% 6% 4% 65% planned 35% corrective 53% planned 47% corrective 1 : 1.32 1 : 1.47 $ 2.236 1 Information is reported quarterly. T:\Finance\Finance Draft Agenda Reports\FY 27V27-2 (Fcb 27 Board Meeting)\MgmlStats as of 1 l-3-6.doc
Management Statistics Based on Information Available Month Ending 12/31/6 1. Labor as a percentage of Controllable O&M budget (As December 31,26) 2. Inventory Turnover rate for year ending 9/3/6 3. Employee Turnover rate (1 /176-12/31 /6) 4. Planned Maintenance time vs. Corrective Maintenance time Month of December 26 January 26 - December 26 5. Full Time Equivalents (FTEs)/Million Gallons Month of December 26 JanuaryJ26 - December 26 6. Dollars/Million Gallons 7. Regulatory violation occurrences December 26 8. Safety - lost time accidents December 26 9. Completion of major projects on time and within budget 12% 6% 5% 64% planned 36% corrective 54% planned 46% corrective 1 : 1.34 1 : 1.48 $ 2.236 1 Information is reported quarterly. T:\Finance\Finance Draft Agenda ReportsVFY 27V27-2 (Feb 27 Board Meeting)\MgmtStats as of 12-31 -6.doc