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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
<br /> four years are as follows:
<br /> Water Fund Cash Flows
<br /> $3,000,000
<br /> $2,500,000
<br /> $2,000,000
<br /> ill l.
<br /> $1,500,000 I
<br /> II::':1:::;,;;;:.'::::_1.:1"4.1 4
<br /> $1,000,000 ,,,,-..91.54,--.!
<br /> rs
<br /> $500,000A,filgrir
<br /> ��ckec'e\9\- Jc e�ec'\S 1 �e°etC\' J( e�e'<`\• �6�eoetP' Jc 6(\e 1��eceP�S J( e�e��s
<br /> S
<br /> 20 O`S 2P
<br /> .4o\5-(se
<br /> `s 2P co`S 2� co`s
<br /> 201� 2') `1,Q )1 `V
<br /> 'Operating costs ==Debt payments •Operating receipts 1
<br /> Water Fund Cash Balances
<br /> $6,000,000 '
<br /> $5,400,000
<br /> $5,335,070
<br /> $4,800,000 $4,367,165
<br /> $4,200,000 $4 255 964
<br /> $3,681,481
<br /> $3,600,000
<br /> $3,000,000 Milli
<br /> $2,400,000
<br /> $1,800,000
<br /> $1,200,000
<br /> $600,000
<br /> $- I I ,
<br /> 2014 2015 2016 2017
<br /> Emu Unrestricted —A-Unrestricted designated reserve*
<br /> * Unrestricted Designated Reserve: This reserve is established to address the short-term financial variability inherent in
<br /> operating a Water Utility. Potential sources of this variability include but are not limited to: risks associated with natural
<br /> disasters, reduction in overall customer usage, changes in total system usage resulting from the actions of large
<br /> customers, failure to achieve budgeted levels of net income, changes in interest income, and general operational
<br /> exposures.
<br /> The target level for this reserve, included as the red line in the chart above, is 6 months operating expenditures less
<br /> depreciation plus the sum of next year's total principal and interest payments. The balance above this target level shall be
<br /> unrestricted.
<br /> The cash provided by operating activities has remained strong and was sufficient to cover the amount of 1't'(1)1(
<br /> capital and debt needs in 2017. As mentioned in the analysis of the Electric fund it is important to
<br /> continue to monitor future cash need with the use of a projection and capital improvement plan. +I)rOress.
<br /> (suing
<br /> ii('\ IIIdtI
<br /> 7 \uiiihcrs
<br /> 57
<br />
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