Eastern Municipal Water District
California

Action/Info Item
3711

Financial Operating and Capital Highlights Through the Fourth Quarter of Fiscal Year 2018-19

Information

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Category:Action/Info ItemMeeting Workflows:Board Admin Committee Workflow

Background

We are pleased to present the financial operating and capital highlights for the fourth quarter of Fiscal Year 2018-19, period ending June 30, 2019.  Some notable highlights include:

 

·         Overall, consolidated enterprise results were favorable to budget:

 

o       Consolidated Enterprise operating revenue was above budget by 1.8%, with total operating expenses below budget by 5.7%.

o       Net Operating Margin exceeded the budget by $38.3 million.

 

·         Water system revenue was on target:

 

o       Domestic water sales were 2,716 acre-feet (AF) or 3.4 percent below budget.  

o       Total water revenues were $132.8 million, which was $0.2 million or 0.1 percent above budget. 

o       Operating costs were $116.7 million, which was $5.4 million or 4.5 percent below budget.

o       Net operating revenue to fund capital commitments was $16.2 million, which was $5.6 million above budget. 

 

·         Wastewater system net operating revenue was above target:

 

o       Revenues were $102.0 million, which was $5.0 million or 5.2 percent above budget.

o       Operating expenses were $57.3 million, which was $5.4 million or 8.6 percent below budget.  Temporary postponement of the hypochlorite disinfection system implementation at the San Jacinto and Perris Valley RWRFs resulted in lower chemical/hypochlorite costs. 

o       Net operating revenue to fund capital commitments was $44.8 million, which was $10.4 million above budget. 

 

·         Recycled system net operating revenue was below target:

 

o       Revenues were $9.7 million, which was 7.3 percent below budget.  The District sold 25,811 acre feet of recycled water, which was 10,189 acre feet, or 28.3 percent below budget as a result of heavy rains from January through April 2019.

o       Operating expenses were $6.8 million which was in line with budget.

o       Net operating revenue to fund capital commitments was $3.0 million, which was $0.7 million below budget.

 

·         Connection fees for 7,613 EDU/EMS through the fourth quarter were higher than the 6,796 EDU/EMS from the same time period last year, and were above the budgeted connection fee revenues by $11.7 million or 26.4 percent.

 

 

Attached for the Boards review is a staff report (Exhibit A) providing data and analysis of the Districts financial and capital position through the fourth quarter of Fiscal Year 2018-19.  The report includes a consolidated enterprise summary, an operating services summary, and a summary of capital expenditures for the fourth quarter of Fiscal Year 2018-19.  Attached are presentations of the operating and financial highlights and the capital improvement program.

 

Financial/Strat Plan/Enviro

FINANCIAL IMPACT:

As noted herein

 

STRATEGIC PLANNING GOAL/OBJECTIVE:

Ensure financial stability and demonstrate responsible stewardship of public funds.

 

ENVIRONMENTAL IMPACT:

None

Recommendation

Receive and file this report.

Meeting History

Sep 5, 2019 7:30 AM  Board Administrative Committee Regular Meeting
draft Draft
RESULT:REVIEWED AT COMMITTEE
Sep 18, 2019 9:00 AM  Board of Directors Regular Meeting
draft Draft

Mr. Turner and AGM Mouawad provided presentations on this item