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The results of the operations for the Water Fund in terms of cash flow and the breakdown of the cash balances for the past four years
<br /> are as follows:
<br /> Water Fund Cash Flow
<br /> $3,500,000
<br /> $3,000,000
<br /> $2,500,000 + ____
<br /> $2,000,000
<br /> $1,500,000
<br /> $1,000,000
<br /> $500,000
<br /> $ 111
<br /> -
<br /> 2012 2012 Receipts 2013 2013 Receipts 2014 2014 Receipts 2015 2015 Receipts
<br /> Disbursements Disbursements Disbursements Disbursements
<br /> Operating costs ■Debt payments ■Other(capital,intcrfund,etc.) •Operating receipts ■Other(interest,connection fees,etc.)
<br /> Water Fund Cash Balance
<br /> $5,000,000
<br /> $4,500,000 ! $4,367,165
<br /> $3,681,481
<br /> $4,000,000
<br /> $3,500,000 j
<br /> $3,254,530 $3,390,879
<br /> $3,000,000
<br /> $2,500,000
<br /> $2,000,000 +,
<br /> $1,500,000 4
<br /> $1,000,000
<br /> $500,000
<br /> $ T —
<br /> 2012 2013 2014 2015
<br /> imim Unrestricted Unrestricted designated reserve*
<br /> *Unrestricted Designated Reserve: This reserve is established to address the short-term financial variability inherent in operating a
<br /> Water Utility. Potential sources of this variability include but are not limited to: risks associated with natural disasters,reduction in
<br /> overall customer usage,changes in total system usage resulting from the actions of large customers,failure to achieve budgeted levels
<br /> of net income,changes in interest income,and general operational exposures.
<br /> The target level for this reserve,included as the red line in the chart above,is 6 months operating expenditures less depreciation plus
<br /> the sum of next year's total principal and interest payments. The balance above this target level shall be unrestricted.
<br /> The cash balance increased due to cash provided by operations exceeding cash used for noncapital and capital activities.As mentioned
<br /> in the analysis of the Electric fund it is important to continue to monitor future cash need with the use of a projection
<br /> and capital improvement plan. People
<br /> +l'I'ocess.
<br /> (ming
<br /> I3 'voii Ithi.
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