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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 /> $40,000,000
<br /> $35,000,000
<br /> $25,000,000 ,.
<br /> $25,000,000 11111.1.111111111
<br /> f z '
<br /> �'.
<br /> $20,000,000
<br /> I 111111
<br /> $15,000,000
<br /> $10,000,000
<br /> I 1111111111
<br /> $5,000,000
<br /> $ ,,;_ :x. ...
<br /> 2013 Receipts 2013 2014 Receipts 2014 2015 Receipts 2015 2016 Receipts 2016
<br /> Disbursements Disbursements Disbursements Disbursements
<br /> ■Operating costs ■Debt payments •Operating receipts
<br /> Electric Fund Cash Balances
<br /> $16,000,000 $14,680,691
<br /> $13,175,626
<br /> $14,000,000
<br /> $12,057,293 $12,097,110
<br /> $12,000,000
<br /> $10,000,000 - --
<br /> 11111
<br /> $8,000,000
<br /> 1111111 .11111
<br /> $6,000,000
<br /> MIN EMI
<br /> $4,000,000
<br /> 1111111 111111
<br /> $2,000,000
<br /> $-
<br /> 2013 2014 2015 2016
<br /> Unrestricted mil Restricted for debt service(bond covenents) f Unrestricted designated reserve*
<br /> *Unrestricted designated reserve:established to address the short-term financial variability inherent in operations.Potential sources of
<br /> 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 debt needs in
<br /> 2016.The Utilities issued debt to fund a down payment to MMPA.We recommend that the Utilities continue to
<br /> closely monitor future cash flow with the use of projections and the capital improvement plan.
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