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The results of the operations for the Electric Fund in terms of cash flow and the breakdown of the cash balances for the past four years
<br /> are as follows:
<br /> Electric Fund Cash Flows-Excluding Refunding Bonds
<br /> $35,000,000
<br /> $30,000,000
<br /> 1/1/ ,„ ;
<br /> $25,000,000
<br /> $20,000,000
<br /> $15,000,000 ,.
<br /> $10,000,000
<br /> $5,000,000
<br /> 2012 2012 Receipts 2013 2013 Receipts 2014 2014 Receipts 2015 2015 Receipts
<br /> Disbursements Disbursements Disbursements Disbursements
<br /> Operating costs to Debt payments ■Other(capital,interfund,etc.) •Operating receipts ■Other(interest,interfund,etc.)
<br /> Excluded from the chart above in 2014 are the net refunding bond proceeds of$2,046,586 and related debt payments.
<br /> Electric Fund Cash Balances
<br /> $14,000,000 $13,175,626
<br /> $11,370,664 $12,057,293 $12,097,110
<br /> $12,000,000 I
<br /> $10,000,000
<br /> $8,000,000
<br /> $6,000,000 f
<br /> $4,000,000
<br /> $2,000,000
<br /> $-
<br /> 2012 2013 2014 2015
<br /> NNE Unrestricted momi Restricted for debt service (bond covenents) —k—Unrestricted designated reserve*
<br /> *Unrestricted designated reserve: established to address the short-term financial variability inherent in operations. Potential sources
<br /> of this variability include risks associated with natural disasters,reduction in overall customer usage,changes in total system usage
<br /> resulting from the actions of large customers, failure to achieve budgeted levels of net income,changes in interest income,and general
<br /> operational exposures.
<br /> The target level for this reserve,included as the red line in the chart above,is the sum of six months operating expenditures less
<br /> depreciation and less purchase power costs,plus the sum of next year's total principal and interest payments,plus one month budgeted
<br /> average purchase power cost.The balance above this target level shall be unrestricted.
<br /> The cash provided by operating activities has remained strong and was sufficient to cover the amount of capital and
<br /> debt needs in 2015.The summary above highlights the significant amount of cash needed each year for the capital PP,Opl('
<br /> activities of the Utilities.The operations have been able to finance the capital activities for the last four years. We +PfOCCSS
<br /> recommend that the Utilities continue to closely monitor future cash flow with the use of projections and the capital
<br /> improvement plan. I,t)J I lt-;
<br /> [3evnidti
<br /> \withers
<br /> 163
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