ML20215L682
| ML20215L682 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 12/31/1986 |
| From: | GAINESVILLE REGIONAL UTILITIES |
| To: | |
| Shared Package | |
| ML20215L605 | List: |
| References | |
| NUDOCS 8705120328 | |
| Download: ML20215L682 (42) | |
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! Dasid Coffey Heserly Hill lean Chalmers Dasid Flagg W.E. "Mac" McEachern comm-oner mor comnuwoner commissuiner woroimmiss,oner commissioner Pro Tem i
- F O R E W O R D l l The City of Gainewille is employing oser 18,lX)0 faculty area is one of the largest educa- !
located in north central Florida and staff at an annual payroll in tional and medical complexes in midway between the Gulf of excess of $100 million, is the the South. l Mexito and the Atlantic (kean. most significant factor in With an area of 35 square miles. Gainewille's economy. Shands Gainessille Regional Utilities !
it is the largest city in Alachua Teaching Hospital and Clinics, (GRU), a combined utilities County. The estimated population with an annual payroll of system owned by the City, !
of the Gainessille urban area approximately $52 million for its provides Gainessille and certain I is I ll,5tX). 3,(XX) employ ees, is a leading unincorporated areas of Alachua example of the etonomic County with electric, water and The Unisersity of Florida, with impact of the area's medical wastesvater sersice.
more than 35,lx)O students and institutions. The Gainewille C O N T E N T S i
Auditors Report
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Management letter . 2 15 i hghhghts 1 Commitment . %
4 Rate St hedule 18 Liet tric S3 stem .
8 Combined Systend Map 39 Water S3 stem .
Wastew ater Sy stem 10 .\dministration Bui ldmg . . 40 H na ncial Sum m.try 12 i
T O O U R O W N E R S .
A N D C U S T O M E R S ;
With pride and appreciation an interconnection suit with Cooperative and GRU which we dedicate this Annual Report to Florida Power and Light establishes a service boundary Richard L Hester. Prior to his Company, competitive fuel between the two utilities in the departure in July to pursue purchasing, and lower-than- area surrounding the urban opportunities in the private sector, projected operating and Gainesville area. Some 4,000 he had served as Gainesville maintenance expenditures. cooperative members will transfer Regional Utilities' general to GRU service during the first manager for seven years. During A variety of projects completed nine years of the agreement, the term of his leadership, GRU or in progress during the year which seeks to eliminate costly-achieved a reputation for continued to shape the future duplication of services within competitive rates, responsible of Gainesville Regional Utilities. Alachua County.
management, and operational A formula was established to New technology offers reliability which is remarkable determine the amount of net improved operating efficiency for a municipal utility of this revenues to be transferred and reliability, and 1986 saw size. His legacy of sound annually to the City's General advances in automation on planning, dedicated effort, Fund, providing improved long- several fronts. Initial phases of and achievement continued range financial planning for both system design and data input throughout 1986, and serves the Utility and the City's General were begun on GEOMAX, a as a continuing example to Government programs. A 15-year cooperative effort of Alachua his friends and colleagues. territorial agreement was County and GRU to establish approved by both Clay Electric a geographic-based automated Once again, GRU experienced a banner year in financial performance, achieving a record ,
high of $43.6 million in net revenues - a 5.3 percent w - .
increase over 1985. Our debt .
coverage ratio increased to 2.43 ,
as compared with 2.31 for the Sa preceding year. A net improve-ment of $3.7 million was realized j in our Rate Stabilization Fund with a deposit of $1.9 .
million rather than a budgeted # )
withdrawal of $1.8 million. Retail y4 l k
electric sales rose 8.9 percent to 1
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$73 million. largely due to I increased native load sales to a '.I '
growing Gainesville community. l Revenues from volatile hour-by-hour electric sales to other l
i utilities on Florida's Energy l Broker system decreased by l nearly 50 percent, but were , l partially offset by more stable ' '
l sales under firm contracts with l the Florida Municipal Power
- Agency and other municipalities. -
Other factors contributing to our d '
financial success included a $1.6 W.D. Higginbotham, Jr. Jerry Warren million final settlement from City Manager General Manager for Utilities 2
mapping and facilities facilities, and a new utilities' and our Kanapaha Wastewater management system which will administration building. Treatment Plant as the district's computerize many operations best publicly owned plant.
currently performed manually. As always, we recognize that
- Progress continued on the CRU's successes are the result of Throughout 1986 our establishment of our new the loyalty and effort of our achievements have been directed energy management system, the employees. We were not alone in toward establishing stronger Regional Utilities Customer that recognition during 1986: foundations, greater efficiencies, Information and Service System Florida's Department of Environ- and broader horizons for service to upgrade our billing and mental Regulation once again in the years ahead. We enter customer service procedures, a named our Murphree WaterTreat. 1987 with a strengthened sense of microwave communications ment Plant as the best operated purpose - to provide for the system between major utility plant in the Northeast District, future of our community.
H I G H L I G H T S Percent increase /
1986 1985 (Decrease)
. Financial:
Net Revenues After Rate Stabilization Transfer $ 43,597,106 $ 41,405,639 5.3%
Coverage Ratio 2.43 2.31 5.2%
Aggregate Debt Service 17,939,790 17,939,790 0.0%
Long-Term Debt 228,514,504 228,264,986 0.1 %
Net Utility Plant 369,159,603 358,548,691 3.0%
Cash and Investment -
Rate Stabilization Fund 21,762,905 20,062,793 8.5%
Customers (12 Months Average):
Electric:
Residential 46,830 45,386 3.2%
Non-Residential 5,429 5,243 3.5%
TOTAL ELECTRIC 52,259 50,629 3.2%
Water 37,462 36,024 4.0%
Wastewater 33,844 32,669 3.6%
Sales of Energy (Gigawatt Hours):
Residential 488.6 449.5 8.7%
General Service /Large Power 503.2 471.5 6.7%
Lighting 15.9 15.8 1.0%
Sales for Resale 36.0 28.9 24.3 %
SUB-TOTAL 1,043.7 965.7 8.1%
interchange 586.6 761.1 (22.9%)
TOTAL 1,630.3 1,726.8 (5.6%)
Sales of Water (Million Gallons) 6,158.9 5,972.5 3.1%
3
E L E C T R I C S Y S T E M The electric facilities of Florida Power and Light energy usage of 488.6 gigawatt Gainesville Regional Utilities Company and Florida Power hours (gWh). Consumption by (GRU) encompass 150 square Corporation at 138 kV general service and large power miles - approximately one-sixth and 230 kV. customers increased 6.7 percent of Alachua County - and during the year for a combined serve 70 percent of the As shown in the graph on consumption of 503.2 gWh.
county's population. page 6, the system's fuel mix for net generation during 1986 was The sale of 500 gWh of energy Our Deerhaven and John R. approximately 74.3 percent coal, to other utilities through Kelly Generating Stations have 22.5 percent natural gas,2.5 Florida's Energy Broker network a combined fossil-fueled percent nuclear, and 0.7 percent contributed net revenues of $3.4 generating capability of 479,000 fuel oil. Competitive fuel million to GRU for the year, and kilowatts (kW). Deerhaven, with purchasing during the year resulted in fuel savings of about a capability of 357,000 kW, resulted in an 8.2 percent $6.4 million for utilities in operates one coal-fired steam reduction in average delivered peninsular Florida.
unit, one oil / gas-fired steam unit, cost of coal per million and two oil / gas-fired combustion BTU's, and GRU's new rail Our continuing effort to secure turbine units. The Kelly Station's transportation agreement with more predictable, stable markets three oil / gas-fired steam units the CSX railway family amounted for our excess capacity and three combustion turbine to a $1.2 million savings in resulted in a one-megawatt units provide a capability of transportation costs over (MW) increase in our existing 1.5 122,000 kW. An additional standard tariff rates. MW contract for firm sales to the 11,600 kW is provided by City of Starke. In May we began GRU's part ownership of the An annual average total of sales under a 30 MW firm Crystal River 3 nuclear power 52,259 local customers were contract with the Florida unit, operated by Florida served by our electric system in Municipal Power Agency.
Power Corporation. 1986, an increase of 3.2 These firm sales, combined percent over 1985. Residential with previously mentioned These stations provide all of customers, comprising 90 economy sales on the Energy our power requirements via a percent of the total number, Broker network, netted 138 kilovolt (kV) transmission increased consumption by 8.7 Gainesville Regional Utilities network with connections to percent to a total residential eontinued on page 6)
ELECTRIC SYSTEM ELECTRIC SYSTEM ENERGY SALES NUMBER OF RETAll CUSTOMERS (cicAwArr nouns >
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eonnnuenom page m Unit 8's heat exchanger and range of parameters which must
$4.3 million in total interchange renovation of the chimney for be considered to efficiently revenues. Units 7 and 8 to improve its and effectively dispatch our structural integrity. electric generation. Advanced Significant operations and capabilities of the system will maintenance projects A significant improvement in improve our ability to weigh undertaken at our generating the reliability of service to the economic and reliability factors stations during the year included southwestern portion of our while providing the added the addition of natural gas firing service area was realized by advantage of serving as a training to Deerhaven 2 as an alternative placing in service the new 60 tool for our dispatchers and to firing by No. 2 fuel oil during mVA Sugarfoot Substation, power system operators.
start-up, shut-down, and under located in the center of a rapidly low load conditions. Fuel savings expanding area of shopping Planning and design activities in excess of $100,000 per year malls, medical facilities, and began for the installation of a are expected to result from this single and multi-family microwave communication system alternative firing. A contract developments. Two miles of to link GRU's electrical substations, was entered into with Burns and additional 138 kV transmission production facilities, control center, Roe Company to develop an line were completed to connect and administrative offices. This operating procedures program this new substation to our system, scheduled for completion in for Deerhaven Unit 2. The new transmission network. May 1987, will carry control, data, operating manuals will contain and voice communications between system design descriptions: Early in 1986 contracts were facilities.
operating sequences for start-up, awarded to Harris Corporation normal operation, and shut- for the development and supply in support of the City's program to down; and alarm response of a state-of-the-art energy revitalize our central city district, procedures for each of management system to replace GRU began the first phase of a Deerhaven 2's twenty-three one thirteen years old. construction project to replace major plant systems. Completion Scheduled for delivery in the downtown area's overhead is expected in the second quarter mid-1987, the new energy distribution facilities with new of FY 87. management system will include underground facilities. The multi-Supervisory Control and Data year program is being performed in Projects completed this year to Acquisition (SCADA) functions as concert with the area's master entend the life of the Kelly well as advanced applications streetscape plan and with other Station included retubing of programs to evaluate the wide downtown redevelopment activities.
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W A T E R S Y S T E M Gainesville Regional Utilities' favorable shift of peak flow from and Rehabilitative Services as water system is supplied by the afternoon to morning hours. part of its dental health Murphree Treatment Plant, fluoridation program. Our which is served by eight deep Extensive water quality supply well rehabilitation wells capable of pumping 40 monitoring - well beyond state program continued with million gallons per day (mgd) of and federal requirements - is renovation of the No. 8 well, ground water to the treatment conducted by GRU as part of the and completion of installation of process. Treatment capacity is City's commitment to provide a new high service distribution rated at 30 mgd, with ten million safe, high quality water to our pump is scheduled for early gallons of storage provided on customers. For the eighth time in 1987. The dual drive the plant grounds. Our water the past ten years, Florida's diesel / electric pump will distribution system includes two Department of Environmental provide additional stand-by elevated storage tanks with a Regulation (DER) recognized the pumping capacity for emergency combined capacity of 1.5 million Murphree Plant as the best power loss situations and gallons and approximately 717 operated public water treatment contributes toward meeting miles of transmission and facility in DER's northeast DER's requirement that the plant distribution mains. district. Additional recognition . be capable of producing 50 of the continuing dedication of percent of peak demand with Customers increased 4.0 our employees was provided by auxiliary power.
percent during 1986 to an the American Water Works annual average of 37,462, while Association with a special 1986 A new water treatment sales totaled 6,159 million Award of Progress to the pressure monitoring network has gallons to mark a 3.1 percent combined treatment and been installed. Data from increase over the previous year. distribution departments for monitoring transmitters will aid in May 1986 we experienced a three consecutive years of in system operation, help to maximum daily flow of 28.5 mgd outstanding safety records. locate mainline breaks, and aid due primarily to an extended dry system planners in creating spell. Customers responded A new fluoride feed system distribution models, to a GRU initiated water began operation at the Murphree conservation program with Plant in February.This system System growth continued an average of 5 mgd per was completely funded by steadily with the installation of hour demand reduction and a Florida's Department of Health more than 1,100 new meters and WATER SYSTEM WATER SYSTEM sal _ES NUMBER OF CUSTOMERS mmON CAHONS)
(ANNUAL AVERAGO A1010 M 6I,0 $
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enhance our ability to meet peak in conjunction with the system of an additional 38 miles consumer demands with University of Florida's TREEO of city / developer constructed ir. creased distribution efficiency Center. Buster Backflow, a water lines. ar.d reliability. Our program to comic book produced by our l increase metering reliability and staff as a training aid for Major construction activities efficiency continues with semi- students, was completed and will included the completion of the annual inspection of nearly 160 be distributed to elementary first phase of a new 20 inch meters of 3 inch diameter or schools for use in their water
, transmission main on N.W. 39th larger now installed. education curriculum.
j Avenue, adding to the system
- more than 6,000 feet of main Our cross <onnection control A strong commitment to craft and 18 new fire hydrants. Design program continued during 1986 and safety training of our own j of Phase il of the project is with the installation of 130 new employees was in evidence l underway, with construction control devices. Approximately during the year, with more than 1 scheduled for early 1987. The 610 backflow prevention 1,800 classroom hours of '
first phase of a new 30 inch main assemblies are currently in the instruction provided. Acclaim for along N.E.15th Street was system and are being tested these programs, developed by completed, as well as 95 percent annually. Recognized as a leader our training staff with in-house of the project's second phase. in the field of cross <onnection produced video training aids, i These projects, with the 12 inch education, GRU participated in resulted in requests for assistance loop for S.W. 91st Street now in numerous training schools and from other Florida utilities and l progress, will significantly workshops throughout the state professional organizations.
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9
WASTEWATER SYSTEM Gainesville Regional Utilities' of sulfur dioxide as a means of in conjunction with the two wastewata treatment plants, neutralizing free chlorine in the city's downtown redevelop-Kanapaha and Main Street, have effluent to a non-toxic level in ment activities.
a combined treatment capacity of compliance with EPA surface 17.5 million gallons per day water discharge standards. Other System growth was exhibited in (mgd), and are supplied by a treatment plant improvement the addition to our collection collection system including 406 projects included the purchase of system this year of approximately miles of gravity lines,89 miles a rotating drum thickener for the 38,000 feet of developer-of force mains, and 113 Kanapaha Plant to reduce costs constructed gravity line,3,500 pumping sfations. of sludge handling. feet of force mains, and three lift stations. In addition, GRU Customers on the system Additions and improvements to installed over 19,000 feet of during 1986 averaged 33,844, our collection system included gravity lines,11,000 feet of force a 3.6 percent increase over construction of Master Lift Station mains, and one lift station.
last year. Total wastewater 35, a million gallon per day billings during the year were for pumping station which replaces Remote video inspection and 3,518 million gallons, a 6.1 an undersized facility. The in-place cleaning and sealing of percent increase over 1985. An new station includes its own collection lines continued average daily wastewater flow emergency electrical generator. to provide savings over the of 12.3 mgd was treated this Phase 11 of the Windsor Park more time-consuming removal-year, representing a 7.0 gravity extension project was and-replacement method.
percent increase, completed, and 76 additional Maintenance activities using homes were connected to the this method in 1986 accounted A major rehabilitation of the new system in Phase Vll of our for inspection of 60 miles of Main Street Plant was completed Northeast Rehabilitation Project. collection line, hydraulic during the year, including the The S.W. 75th Street force main cleaning of 84 miles, and sealing addition of a mechanical bar project was also completed, of eight miles.
screen to the influent structure, upgrading the force main along overhaul of a clarifier, removal of Tower Road to handle increased Chemical analyses performed approximately 50,000 cubic feet flow, and improvements were by the Kanapaha laboratory for of accumulated grit from the made to our gravity system in the all three GRU utility systems aeration basin, and the addition central district of Gainesville increased this year, demonstrating WASTFWATER SYSTEM WASTEWATER SYSTEM BILLINGS NUMBER OF CUSTOMERS muos cAttossi (ANNUAt AVERAc0 4000 35R0 W M00 mac . , M [M-3 n
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a continuation of our commit- gas procedures, certification period 1990-1992, and that an ment to provide reliable licensing, general construction, additional 4 mgd capacity would environmental controls through and "Right to Know" information meet the area's needs for an j rigorous monitoring programs. regarding hazardous chemicals additional decade. A study j were among the subjects initiated this year evaluated a Classroom hours of training accounting for more than 1200 broad range of effluent treatment for wastewater employees this classroom hours. and disposal alternatives,
, year were more than double the including the current deep-well l total for 1985. Craft and safety Strategic planning projections injection method, power plant i training in CPR, advanced driving indicate that GRU's wastewater reuse, spray irrigation, and
! techniques, laboratory training, treatment demands will exceed natural wetlands treatment.
l confined space and hazardous our current capacity by the 1
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Loading the autumn harvest of Coastal Bermuda at the Kanapaha hay farm.
11
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FINANCIAL
SUMMARY
The financial performance transmission interconnection million: an improvement of of the System continued to with FP&L. $3.7 million over the antic-be strong, primarily due to ipated balance.
increased native load sales of The balance of the Rate Stabili-electricity in conjunction zation Fund (RSF), less accrued Combined system net revenues with lower-than-budget operation interest, at the beginning of this were $43.6 million, an increase of and maintenance expenses. year was $19.7 million. The $2.2 million or 5.3% over fiscal This was further supplemented budget projected a withdrawal of 1985. This produad a coverage by the receipt of $1.6 million $3.6 million for the electric ratio of 2.43 (i.e., net revenues in final settlement proceeds system and budgeted deposits of divided by aggregate debt from our interconnection suit $0.4 million and $1.4 million for service). Net revenues from firm with Florida Power & Light the water and wastewater interchange transactions grew Co. (FP&L). The settlement systems, respectively. The end during the year, while net concluded a lengthy process of year balance, less accrued revenues frorn Energy Broker allowing for our direct interest, for the RSF was $21.6 sales diminished. This further REVENUE EARNED / FISCAL YEAR 1986 ELECTRIC GENERAL SERVICE, ELECTRIC (ARCE POWER. INTERCHANGE SALES FOR RESALE, SALES
'~ '
FUEL ADlL'5TMENT
/s#emC"*%[ %%D:. $15.568,756
& oTHER pow ER SALES .' -
$ 37,819,304 j d? ;
u.9%
A "
.}
s g
W '
[4 -
/c [{f,. Q#
f .pr-fF 3
).f M@c:*'##.. f f,}
.p:* ..- .g A -
ELECTRIC oTHER REVENUES f [.
!, J M.. . q.;M d) . .) 6.6% $7,114.223
.3d '
Ob h
$W 'k-WATER
%[
k' h,.
6.6% REVENUES 6.' $7,162,555 ELECTRIC RESIDENTIAL
% ., ~
\
5 ALES g %.I;%. .
4 7,1 %
$13.002,4 37 '% - -_s
,. p y WASTEWATER REN ENUES
$7,708.042 l
l es n O curinicsnuunrusers 59, s24.720 6 w E wonwsnuatusus 7 iu.sss
! rn O wwmmasssnuuusus m ou l
sm us.m I i
12
1 stabilized our economic base: and d) provide an appropriate (approximately the same level as 21% of the total net revenues return to the City's General in fiscal 1985).
from interchange sales ($4.3 Government. The formula million) resulted from firm sales becomes effective with fiscal 1987. The capital budgeting / facilities contracts with the Florida planning process plays an Municipal Power Agency and the The Tax Exempt Commercial important part in fulfilling our City of Starke, Florida. Paper (TECP) program, with a mission: to provide reliable and total principal outstandmg of economical service to existing During the year, a formula was $49.5 million, continued to and future customers. Capital developed and approved by the produce considerable savings for improvement funding for fiscal City Commission which will our ratepayers. The average 1986 amounted to $22.4 million determine future Utility transfers interest rate or outstanding paper with $12.3 million provided from to General Government. The was 4.73% for the year; it ranged system net revenues and $10.1 formula should accomplish the from a high of 5.77% in the million provided from bond following major objectives: a) second quarter of the year to a construction funds. Net utility track the Uulity's ability to pay, low of 3.625% in the third plant increased $10.5 million b) be stable, not volatile, c) be quarter. Average maturity of during the year to a balance of simple and easy to administer outstanding paper was 57.3 days $369.2 million at year's end.
REVENUE ALLOCATED / FISCAL YEAR 1986 ELECTRIC oTHER ELECTRIC FUEL EXPENSE -
o & M EXPENSES ,,
- INTERCHANGE
$20.950,379
$11,268,218 10.4 %
+
19.3 % .
+
WORKING CAPITAL ,
A ELECTRIC FUEL EXPENSE
& MISCELLANEoU5 & PURCHASED FOW ER -
TRANM ERS RETAll & WHOLESALE
$23,891.586
$2,145.272 i; 2A% , -t 22.0 %
' ; 'p --
U P l f TRAN5f ER (,
$12.308.022 -
30- ., .
11.4 % %' -. m
,)[ c
>-r- 5 . _ .
Y
- b] -
s WA5TEWATER
- y [ XPE SES f' $4,755,465 Y$ 9 CENERAL FUND 8.4% g .
^
$ 05.5 o&
EXPENSES
$3.932,563 18.5 %
59 7% b OPERATK)N&MAINTENANcEIO&M)EXPEN5t5$64,798.211 i.3s E ocsistaucE 20m.292 DtsT SERVICE n n O ununettsnueixmutsnusocurior=^ss,ta it**o:2 5""
.o G ctstaatrusoraassrta 9.oss.s2o m E womsccam=&umursious 2uun
$106.395.117 13
INVESTOR ;
INFORMATION 1 CERTIFIED PUBLIC ACCOUNTANTS l Coopers & Lybrand and Davis, Monk, Farnsworth & Company REVENUE BONDS Trustee / Registrar / Paying Agent Morgan Guaranty Trust Company New York, New York TAX EXEMPT COMMERCIAL PAPER Dealer Goldman Sachs and Company NewYork, New York Paying Agent Manufacturers Hanover Trust Company New York, New York 14
i l
i
\
AUDITORS' REPORT i
'Th'e Honorable Mayor and Members of the City Commission City of Gainesville Gainesville, Florida 32601 We have examined the balance sheets of Gainesville Regional Utilities (the Combined Utility Funds of the City of Gainesville, Florida), at September 30, 1986 and 1985, and the related statements of revenue and expense and retained earnings and changes in financial position for the years then ended.
Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the financial statements referred to above present fairly the financial position of Gainesville Regional Utilities, at September 30,1986 and 1985, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.
l Coopers & Lybrand Jacksonville, Florida Davis, Monk,
. Farnsworth & Company Gainesville, Florida r
December 1,1986 15
GAINESVILLE REGIONAL UTILITIES BALANCE SHEETS September 30,1986 and 1985 ASSETS 1986 1985 Utility Plant:
Utility Plant in Service $468,452,988 $450,979,342 Construction in Progress 12,409,654 6,622,981 480,862,642 457,602,323 Less: Accumulated Depreciation and Amortization (111,703,039) (99,053,632)
NET UTILITY PLANT 369,159,603 358,548,691 Restricted Assets:
Capital Facilities - Cash and investments 1,336,553 1,346,330 Decommissioning Reserve - Cash and Investments 276,012 176,34f Water Pollution Emergency Reserve - Cash and Investments 50,000 50,000 Utility Deposits Cash and Investments 2,712,381 2,576,555 Debt Service Fund - Cash and Investments 34,688,713 33,225,987 Rate Stabilization Fund Cash and Investments 21,762,905 20,062,793 Construction Fund -
Cash and Investments 6,212,179 15,068,546 Contracts-in-Progress 4,058,779 1,488,277 Utility Plant improvement Fund -
Cash, investments, and Receivables 2,267,822 3,347,374 Due From Other Funds 130,094 226,070 Materials Inventories 4,395.464 3,563,254 TOTAL RESTRICTED ASSETS 77,890,902 81,131,527 Carrent Assets:
Cash and Short-Term investments 7,304,028 6,459,106 Accounts Receivable (Net of Allowance for Uncollectible Accounts; $314,752 in 1986 and $342,590 in 1985) 12,279,810 15,138,160 Due From (To) Other Funds 1,254,053 (36,053)
Prepaid Expenses 88,221 93,369 inventories -
Fuel 11,126,809 10,125,042 Materials and Supplies 483,497 271,643 TOTALCURRENT ASSETS 32,536,418 32,051,267 Deferred Debits 4.814,893 7,369,362 TOTAL ASSETS $484,401,816 $479,100,847 See accompanying notes.
I 16 i
i
-)
i j l LIABILITIES AND FUND EQUITY 1986 1985
. Long-Term Debt and Fund Equity:
Long-Term Debt i Utilities System Revenue Bonds Payable ~ $186,000,000 $186,000,000 Commercial Paper Notes Payable. 49,501,000 49,501,000 l 235,501,000 - 235,501,000 Less: Unamortized Bond Discount (6,986,4%) (7,236,014)
Total Long-Term Debt 228,514,504 228,264,986 Fund Equity-Contributions in Aid of Construction 56,104,848 53,498,024 Retained Earnings 173,7 %,702 ' 170,883,576 Total Fund Equity 229,901,550 224,381,600 TOTAL LONC-TERM DEBT AND FUND EQUITY 458,416,054 452,646,586 Payable from Restricted Assets:
Utility Deposits 2,712,381 2,576,555 i Accrued Interest Payable 9,046,800 : 9,211,112-i . Construction Fund -
l Accounts, Contracts and l Retainages Payable ~ 5,353,974_ .1,488,277 -
Due to Other Funds ' 1,847,332 1,537,739 Utility Plant Improvement Fund .
Accounts Payable and Accrued Liabilities 835,593 557,180 TOTAL PAYABLE FROM RESTRICTED ASSETS 19,7 %,080 15,370,863 I
i Current Liabilities:
Fuels Payable . 2,265,829 5,982,739 Accounts Payable and Accrued liabilities 2,445,440 - 2,611,303
!' TOTAL CURRENT UABILITIES 4,711,269 8,594,042 Deferred Credits 1,478,413 2,489,356 Commitments and Contingencies - -
(Note 9)
I TOTAL UABILITIES AND FUND EQUITY $484,401,816 $479,100,847 d
17
_-r- _
- m. _ . . _ _ - ._ . _ _ _ . . _ . - . _ _ _ . , _ __
GAINESVILLE REGIONAL UTILITIES STATEMENTS OF REVENUE AND EXPENSE AND RETAINED EARNINGS
- FOR THE YEARS ENDED SEPTEMBER 30,1986 AND 1985
_ 1986 1985 Operating Revenues:
Sales and Service Charges $100,140,938 $106,876,083 Other Operating Revenue 941,245 899,025 TOTAL OPERATING REVENUES 101,082,183 107,775,108 Operating Expenses:
Operations and Maintenance 50,900,638 55,904,771 Administrative and General 13,897,573 13,070,417 Depreciation and Amortization 13,152,346 12,818,386 TOTAL OPERATING EXPENSES 77,950,557 81,793,574 '
OPERATING INCOME 23,131,626 25,981,534 Nonoperating Revenues (Expenses):
Interest Revenue 6,226,947 6,814,222 Interest Expense (20,505,450) (20,969,857)
Other Nonoperating Revenue 1,630,667 -
TOTAL NONOPERATING REVENUES (EXPENSES) (12,647,836) (14,155,635)
INCOME BEFORE OPERATING TRANSFERS 10,483,790 11,825,899 OPERATING TRANSFER TO GENERAL FUND (9,055,519) (7,553,773)
NET INCOME RETAINED 1,428,271 4,272,126 RETAINED EARNINGS, Beginning 170,883,576 165,281,059 AMORTIZATION OF CONTRIBUTIONS IN AID OF CONSTRUCTION 1,484,855 1,330,391 RETAINED EARNINGS, Ending $173,796,702 $170,883,576 See accompanying notes.
18
GAINESVILLE REGIONAL UTILITIES STATEMENTS OF CHANGES IN FINANCIAL POSITION FOR THE YEARS ENDED SEPTEMBER 30,1986 AND 1985 1986 1985 Source of Working Capital:
Net income Retained $ 1,428,271 $ 4,272,126 Items Not Requiring Outlay of Working Capital:
Depreciation and Amortization 13.152,346 12,818,386 Working Capital Provided from Operations 14,580,617 17,090,512 Utility Plant Sales and Retirements 686,768 129,583 Contribution. in Aid of Construction 4,091,679 5,640,459 .
Decrease in Unamortized Bond Discount 249,517 249,517 Decrease in Deferred Debits 2,481,162 229,661 increase in Payable from Restricted Assets 4,425,217 223,524 Decrease (increase)in Restricted Assets 3,240.625 (4,471,669)
TOTAL SOURCE OF WORKING CAPITAL 29,755,585 19,091,587 Use of Working Capital:
Utility Plant Additions 24,284,714 18,575,107 Decrease (increase) in Deferred Credits 1,102,947 (622,919)
TOTAL USE OF WORKING CAPITAL 25,387,661 17,952,188 CHANGE IN WORKING CAPITAL $ 4,367,924 $ 1,139,399 Changes in Working Capital by Component:
Current Assets-Increase (decrease):
Cash and Short-Term insestments $ 844,922 $ (2,357,659)
Accounts Receivable (2,858,350) 2,960,285 Due from (To) Other Funds 1,290,1 % 226,502 Prepaid Expenses (5,148) (20,884) fuel, Materials and Supplies Inventories 1,213,621 (727,156)
Current Liabilities - Decrease (increase):
Accounts Payable and Accrued Liabilities 165,863 (128,567)
Fuels Payable 3,716,910 1,186,878 CHANGE IN WORKING CAPITAL $ 4,367,924 $ 1,139,399 See accompanying notes.
19
GAINESVILLE REGIONAL UTILITIES NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30,1986 AND 1985 Note 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES:
Basisof Accounting Gainesville Regional Utilities (GRU) consists of the Combined Utility Funds of the City of Gainesville, Florida (City). GRU uses the accrual basis of accounting and has adopted the uniform system of accounts prescribed by the Federal Energy Regulatory Commis-sion. The electric, water, and wastewater funds are combined along with all restricted asset accounts.
Investments l Investments are stated at amortized costs. Premium or discount is amortized over the investment's maturity based on the interest method.
Inventories inventories are stated at cost using the weighted average unit cost method for materials, and the last-in, first-out (UFO) method for fuel. Obsolete and unusable items are reduced to estimated salvage values.
Utility Plant Property and equipment are recorded at cost or estimated original cost where applicable. Maintenance and repairs are charged to operating expense as incurred. The average cost of depreciable plant retired is eliminated from the plant accounts and such cost, plus removal expense less salvage, is charged to accumulated depreciation.
Depreciation and Nuclear Generating Plant Decommissioning Depreciation of utility plant is computed using the straight-line methad os er the estimated service life of the property. Depreciation was equivalent to 2.83% and 2.82% of average depreciable propeity for 1986 and 1985, respectively. Depreciation expense includes a provision for decommissioning costs related to the jointly-owned nuclear power plant (see Note 5) at an annual rate of 3.6% of GRU's share of the estimated costs.
Amortization of Nuclear Fuel The cost of nuclear fuel, including estimated disposal cost, is charged to operating expenses. These costs are charged to customers through increased rates or through the fuel adjustment clause.
Utility Revenue Recognition Utility revenues are recorded as earned. Fuel adjustment revenues are recognized based on the actual fuel costs. Amounts charged based on estimated costs are adjusted monthly for any differences between the actual and estimated costs once actual costs are known.
Interfund Transactions Interfund transactions and contributions are generally made in accordance with budget ordinances. Interfund transactions and balances, except direct billings for utility services (see Note 4), are eliminated for the Combined Utility Funds. Interfund loans do not bear interest.
20
r NOTES TO FINANCIAL STATEMENTS, Continued Note 1 -
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES, Continued:
Allowance for Funds Used During Construction An allowance for interest on borrowed funds used during construction of $543,338 in 1986 and $254,300 in 1%5 is included in con-struction in progress and as a reduction of interest expense. These amounts are computed by applying the effective interest rate on the funds borrowed to finance the projects to the monthly balance of projects under construction. The effective interest rates were approximately 10.3% in 1986 and 1985.
Amortization Bond issuance costs are amortized over the life of the bonds. Other miscellaneous deferred debits are generally being amortized I
over periods from five to ten years. Deferred debit amortization expense was $33,454 and $43,937 for 1986 and 1985, respectively.
Contributions in Aid of Construction Utility plant in service for the water and wastewater funds includes assets received from contributions in aid of construction. The amount of amortization expense included in the statement of revenue and expense relating to the contributed assets is credited to retained earnings to reflect the transfer of this amount to the related contributions account.
Reclassification Certain amounts for 1985 have been reclassified to conform with the presentation adopted for 1986.
Note 2 - LONG-TERM DEBT:
Long-term debt outstanding at September 30 consisted of the following:
1986 1985 Utilities System Revenue Bonds, Series 1983 (Bonds)
Principal Payable Semi-Annually to October 1, 2014; Interest at Various Rates Between 6% to 10.25% $186,000,000 $186,000,000 Utilities System Commercial Paper Notes, Series A (Notes)
Principal Payable August 25,1988; interest at Various Rates Between 70% to 75%
of the Manufacturers Hanover Trust Company Prime Rate 49,501,000 49,501,000 235,501,000 235,501,000 Less: Unamortized Bond Discount (6,986,4%) (7,236,014)
Total Long-Term Debt $228,514,504 $228.264,986 2t
- . .-. . - - - - - - - _- _ _ . = _ - _ ,
4 NOTE 5 TO FINANCIAL STATEMENTS, Continued
- : Note 2. LONG-TERM DEST, Continued:
I The table below lists the Debt Service Requirements on the bonds outstanding at September 30,1986.
Principal and Total Period Ending ' Sinking Fund Debt Service October 1 . Installments Interest Requirements 1986 _$ -
. $ 17,939,790 - $ 17,939,790 1987 - 17,939,790 17,939,790 1988 -
17,939,790 17,939,790 .
1%9 - 17,939,790 17,939,790 1990 -1,725,000 17,939,790 19,664,790
'1991 2,190,000 17,801,790 ' 19,991,790 1992 2,370,000 17,621,115- 19,991,115
~1993 2,570,000 17,419,665 19,989,665 1994 '2,795,000 17,194,790 19,989,790 1995 3,045,000 16,943,240 19,988,240 1996' 3,325,000 16,663,100 19,988,100 1997 3,640,000 16,350,550 19,990,550 1998 3,985,000 16,004,750 19,% 9,750 1999 4,390,000 15,601,268 19,991,268 4
2000 4,830,000 15,156,781 19,986,781 2001 5,320,000 14,667,743 19,987,743 2002 5,860,000 14,129,093 19,989,093 l 2003 6,455,000 13,535,768 19,990,768 2004 7,105,000 12,882,200 19,987,200
- -2005 7,835,000 12,153,937 19,988,937
) 2006 8,640,000 11,350,850 19,990,850
! 2007 9,525,000 10,465,250 19,990,250 2008 10,500,000 9,488,937 19,988,937 2009 11,580,000 8,412,687 19,992,687
-2010 12,765,000 7,225,737 19,990,737 2011 14,070,000 5,917,325 19,987,325 2012 15,515,000 4,475,150 19,990,150 2013 17,105,000 2,884,862 19,989,862 2014 18,860,000 1,131,600 19,991,600
$186,000,000 $385,177,138 $571,177,138 I
I i
i ll
1 NOTES TO FINANCIAL STATEMENTS, Continued Note 2 - LONG-TERM DE8T, Continued:
'The bonds maturing on or after October 1,1994 (except those maturing on October 1,2014), are subject to redemption at the option of the City on and after October 1,1993, at a redemption price of 102h% in 1993, and 102% to 100% thereafter. The bonds maturing on October 1,2014, are sub,iect to redemption at the option of the City on or after October 1,1993, at a redemption price of 100%,
Under the terms of the Bond Resolution relating to the sale of the Bonds, payment of the principal and interest is secured by an irrevocable lien on the GRU's net revenues (exclusive of any funds which may be established pursuant to the Bond Resolution for decommissioning and certain other specified purposes), including the investments and income, if any, thereof.
The Bond Resolution contains certain restrictions and commitments, including C RU's covenant to establish and maintain rates and other charges to produce revenues sufficient to pay operation and maintenance expenses, amounts budgeted for deposit into the rate stabilization fund, amounts required for deposit in the debt service funds, and amounts required for deposit into the utility plant improvement fund.
The Notes were issued under a Revolving Credit and Term Loan Agreement, dated September 1,1983 (Agreement),
Under the terms of the Agreement, G RU, provided it has satisfied certain conditions, may borrow up to $50,000,000 on a revolving basis until August 25,1988, at which time GRU, provided it has satisfied certain conditiens, may convert existing borrowings to a term loan which may include amoun:s utilized to pay maturing Notes on that date. The Agreement provides for same-day availability of funds up to a maximum of $50,000,000.
Note 3 CASH ANDINVESTMENTS:
The funds of GRU are administered in accordance with the Bond Resolution and are invested in government securities and other temporary investments.
. Note 4 -INTERFUND DIRECT UTILITY BILLINGS:
Included in revenues are the following interfund direct billings for utility services:
1986 1985 Revenues:
Sales of Electricity $1,742,224 $1,782,637 Sales of Water 149,848 111,848 Wastewater Service Charges 2,782 2,452 Total Revenues $1,894,854 $1,8%937 included in expenses are the following interfund direct billings for utility services:
1 1986 1985 Expenses:
Electric fund $ 305,258 $ 271,366 i Water Fund 787,974 820,793 Wastewater Fund 801,622 804,778 Total Expenses $1,894.854 $1,896,937 l
23 I
NOTES TO FINANCIAL STATEMENTS, Continued Note 5 - JOINTLY-OWNED ELECTRIC PLANT:
G RU-owned resources for supplying electric power and energy requir ements include its 1.4079% undivided ownership interest in the Crystal River Unit 3 (CR3) nuclear power plant operated by Florida Power Corporation. CR3 revenue and operating and maintenance costs, which represent GRU's part of all revenue and expenses attributable to operation of CR3, are properly recorded in accordance with the instructions as set forth in the Uniform System of Accounts. Payments are made to Florida Power Corporation in accordance with the CR3 participation agreement.
Note 6 - CONTRIBUTIONS IN AfD OF CONSTRUCTION:
Contributions in aid of construction are as follows:
t 1986 1985 i'
Contributions in Aid of Construction:
Utility Plant, Property, and Equipment -
Contributed by Municipality $ 3,982,276 $ 3,982,276 Federal and State Grants in Aid of Construction 12,119,939 12,119,939 Contributions From Customers and Developers:
, Plant Contributed By Developers -26,532,888 24,718,294 Connection Charges 26,537,587 24,260,502 69,172,690 65,081,011 Accumulated Amortization (13,067,842) (11,582, % 7)
Contributions in Aid of Construction $56,104,848 $53,498,024 Note 7- RETAINED EARNINGS:
Retained earnings reserved for debt service and unappropriated are as follows:
4 1986 1985
! Reserved For Debt Service $ 25,641,913 $ 24,014,875
. Unappropriated 148,154,789 146,868,701 Total Retained Earnings $173,7%,702 $170,883,576 Retained earnings balances at September 30, included in the debt service fund accounts, are as follows:
1986 1985 Sinking Fund Account $ 4,764,235 $ 3,143,429 Reserve Account 20,726,622 20,741,452 Debt Service Account 8,974,001 8,983,068 Subordinated Indebtedness fund Account 210,014 352,000
- Commercial Paper Note Payment Account 13,841 6,038 34,688,713 33,225,987 Less: Amounts Appropriated for Current interest Payable (9,046,800) (9,211,112)
$25,641,913 $24,014,875 i
24 i
. ,-..r_,-- - _. -- _
w - _, _ . - ,.. , , - _ _ . _ _ - , . . - , , - _ - , .,y- -- ,,_.m..
NOTES TO FINANCIAL STATEMENTS, Continued s
Note 8 - RETIREMENT PLANS:
The City sponsors and administers two retirement plans that include GRU employees together with other City employees.
The Employees Pension Plan (Employees Plan), a defined benefit, primary contributory pension plan, covers all employees of GRU, except certain personnel who participate only in the Deferred Compensation Plan.
The Oty accounts for, and funds the costs of, the Employees Plan as they accrue. Such costs are based on contribution rates determined by the most recent actuarial valuation.The total contributions by the Oty, including amortization of prior service costs, for the years ended September 30,1986 and 1985, were $1,348,221 and $1,256,526, respectively. Of these totals, approximately
$843,604 and $730,130 was contributed by GRU in 1986 and 1985, respectively.
The following information for the Employees Plan is as of September 30,1986, the date of the latest actuarial valuation:
Actuarial Present Value of Accumulated Plan Benefits-Vested $28,435,835 Actuarial Present Value of Accum ulated Plan Benefits - Nonvested 2,103,404
$30.539,239 Net Assets Available For Benefits $29,130,564 Weighted Average Assumed Rate of Return Used to Determine the Actuarial Present Value of Plan Benefits 10 %
.; Beginning in 1979, certain employees are eligible to participate in a defined contribution deferred compensation plan managed by the International City Management Association Retirement Corporation as fiscal agent for the Oty. Ur: der this plan, the Oty contributes 6% of an employee's annual salary and employees may contribute either a specified percentage or dollar amount. Total
- deferred compensation cost for CRU for the fiscal years ended September 30,1986 and 1985 was approximately $116,703 and
$99,165, respectively.
Note 9 LITIGATION:
Island Creek Coal Sales Company (Island Creek) has claimed that the City of Gainesville (through GRU) breached a coal sales agreement with that company by cancelling the contract. lsland Creek has submitted alternate damage claim figures of $64 million and $40 million, respectively, based upon different legal damages theories. The City has filed a counter <laim in the same arbitration for approximately $2.2 million and has stringently resisted Island Creek Coal Sales Company's claims. The matter was -
trel before a panel of three arbitrators in October,1986, with the parties being required to file all briefs by February 10,1987. An oral decision is not expected before June,1987 After consultation with legal counsel, it is the opinion of management that any liability that might ensue would not materially impair GRU's financial condition.
25
e AUDITORS' REPORT ON SUPPLEMENTAL DATA '
The Honorable Mayor and Members of the City Commission City of Gainesville Gainesville, Florida 32601 Our examinations were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The accompanying schedules of --
combined net revenues in accordance with bond resolution for the years ended September 30,1986,1985,1984,1983, and.1%2, net revenues in accordance with bond resolution - electric utility fund, water utility fund, and wastewater utility fund for the years ended September 30,1986 and 1985,
. combining balance sheet 'at September 30,1986, combining statement of '
revenue and expense and retained earnings for the year ended September 30, 19%, and schedules of utility plant properties and accumulated depreciation and amortization for the year ended September 30,1986, are presented for purposes of additional analysis and are not a required part of the basic finan-cial statements. Such information has been subjected to the auditing pro-cedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Coopers & Lybrand Jacksonville, Florida Davis, Monk, Farnsworth & Company Gainesville, Florida l December 1,1986 l
l
( 26 l
GAINESVILLE REGIONAL UTILITIES SCHEDULES OF COMBINED NET REVENUES IN ACCORDANCE WITH BOND RESOLUTION FOR THE YEARS ENDED SEPTEMBER 30,1986,1985,1984,1983 AND 1982 1986 1985 1984 1983 1982 Revenues:
Electric fund:
Salesof Electnoty $ 86.410,497 $ 93,510,046 $ 84,512,383 $ 97,592,233 $ 92.037,314 Other Electric Revenues 2.876.553 (1,111,906) (1.530.710) 611,473 1.405,509 Interest 1ncome 3,932,750 _ 1,976.216 4 603.179 3.804.633 3,775,215 Total Electnc Fund Revenues 93.219.800 % ,172.356 87.584.852 102.008.339 97.218.038 Water Fund:
Sales c4 Water 6,268.636 6.072,2 % 5,739.085 5.047,278 4,671,391 Other Water Revenues 41 f.099 (170,3%) 443.682 787,078 817,287 Interest income 461.627 448,283 452,587 150.600 139,718 Total Water f und Revenues 7,141,362 6,350.181 6.635,354 5,984.956 5.628.3 %
Wastewater Fund.
Wastewater Billings 7.461.805 7,293,741 6.890,309 6,122.823 5,308.404 Oiher Wastewaver Revenues (168.856) (420.155) (189,521) 652.823 539.459 Interest income 594.118 576.804 531.929 221.984 293.138 Total Wastewater Fund Resenues 7,687 067 7,450.390 7,232,717 6.997.630 6,141.001 TOTAL REVENUES 108.048.229 110.172.929 101.452.923 114.990.925 108.987,435 Operation and Maintenance E apenses:
Electric Fund:
Fuel Empense 36,028.210 42,139,504 37,291,649 53,826.111 54.224,930 Operation and Mamtenance 9.732,748 8.748.618 7,787,440 7,368.447 6.380.117 Adminntrative and Ceneral , 10.349.225 9.762,810 8,265.254 7,586.390 6,5f 7,020 Total Electnc fund Expenses 56,110.183 60.670,932 53.344.343 68.780.948 67.122.067 Water Fund:
Operatu>n aruf Maintenance 2,360.623 2.332,583 2.176,909 1,785,644 1,689,260 Administrative and Cencral 1.571,940 1.465,924 1.204.123 1,210.440 1,142,688 Total Water Fund Expenses 3.932,563 3.798.507 3,381,032 2.9 %.084 2.831.948 Wadewater fund:
Operabon and Mamtenance 2.779.057 2.684.066 2,355,195 2,130,323 1,859.147 Adminntrative and Ceneral 1.976.408 _ f ,821.68 3 1,591,567 1.364.867 1,577,017 Total Wastewater f und Expenws 4.735,465 4.505.749 3.946.762 3.495,190 3.436.164 TOTAL OPERATION AND MAINTENANCE EXPEN5ES (64.798.2111 168,975.188) (60.672.137) t75.272,222) (73,390.179)
NET REVENUESIN ACCORDANCE WIDI BOND RESOLUTION:
Elc<tnc 37,109,617 35.701,424 34.240.'iO9 13.227,391 30.095.971 Water 3.20fl.799 2.551.676 3,254.122 2.988.872 2,796.448 Wastewater 2.931 N)2 2.944.641 3.285,355 3.502.440 2.704.837 Net Revenues Before interest income f rom 5 nking fund 43.250.018 41,197,741 40.780,786 39,718.703 35.597,256 interest income From Sink ng Fund 347,088 207.898 TOTAL NET REVENUE 5 IN ACCORDANCE WITH BOND RE50tUTK N $ 43.597.106 $ 41.405.619 $ 40.780.786 $ 39.718,703 $ 35.597,256 AGCRECATE DEST SERSICE $ 17.939.790 $ 17,939.790 $ 17.919.790 $ 18.974.943 $ 15.787,520 COVlRAGE RATIO 2 43 2.31 1.27 2.09 2.25 See note on page 30.
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27
GAINESVILLE REGIONAL UTILITIES SCHEDULES OF NET REVENUES IN ACCORDANCE WITH BOND RESOLUTION ELECTRIC UTILITY FUND FOR THE YEARS ENDED SEMEMBER 30,1986 AND 1985 1986 1985 Revenues:
Sales of Electricity:
Residential Sales $33,002,437 $30,202,944 General Service and Large Power 35,066,104 32,552,374 FuefAdjustment (2,149,929) 1,826,278 Street and Traffic Lighting 1,438,298 1,384,348 Utility Surcharge 1,558,610 1,379,160 Sales for Resale 1,926,221 1,503,5 %
Interchange Sales 15,568,756 24,661,346 Total Sales of Electricity 86,410,497 93,510,046 Other Revenues:
Transfers From (To) Rate Stabilization 352,179 (2,000,000)
Service Charges 713,251 739,277 Pole Rentals 114,821 76,329 Miscellaneous 65,635 70,488 Settlement of Litigation 1,630,667 -
Total Other Revenues 2,876,553 (1,113,906)
Interest income 3,932,750 3,976,216 TOTAL REVENUES 93,219,800 %,372,356 Operation and Maintenance Expenses:
Operation and Maintenance:
Fuel Expense:
Retail and Purchased Power 23,891,586 25,398,691 Interchange 11,268,218 16,031,417 Other 868,406 709,3 %
Total Fuel Expense 36,028,210 42,139,504 Power Production 6,772,510 5,952,738 Transmission 365,050 362,598 Distribution 2,595,188 2,433,282 Total Operation and Maintenance 45,760,958 50,888,122 Administrative and General:
Customer Accounts 1,331,901 1,377,6 %
Administrative and General 9,017,324 8,405,114 Total Administrative and General 10,349,225 9,782,810 TOTAL OPERATION AND MAINTENANCE EXPENSES 56,110,183 60,670,932 Net Resenuesin Accordance with Bond Resolution:
Retail 32,809,079 27,071,495 Interchange 4,300,538 8,629,929 Net Revenues Before Interest income from Sinking Fund 37,109,617 35,701,424 Interest income from Sinking Fund 304.920 182,641 TOTAL NET REVENUES IN ACCORDANCE WITH BOND RESOLUTION $37,414,537 $35,884,065 See Note on Page 30.
38
GAINESVILLE REGIONAL UTILITIES !
SCHEDULES OF NET REVENUES IN !
ACCORDANCE WITH BOND RESOLUTION i WATER UTILITY FUND FOR THE YEARS ENDED SEPTEMBER 30,1986 AND 1985 1986 1985 Revenues:
Sales of Water:
General Customers $4,818,179 $4,635,401 University of florida 509,970 557,810 fire Protection 671,227 650,063 Generating Stations 106,405 79,544 Utility Surcharge 162,855 149,478 Total Sales of Water 6,268,636 6.072,2 %
Other Revenues:
Transfers To Rate Stabilization (603,315) (1,242,000)
Connection Charges 996,483 1,065,780 Miscellaneous 17,931 5,824 Total Other Revenues 411,099 (170,3%)
Interest income 461,627 448,283 TOTAL REVENUES 7,141,362 6,350,183 Operation and Maintenance Expenses:
Operation and Maintenance:
Source of Supply 2,745 2,029 Pumping 836,169 866,620 Water Treatment 1,074,038 1,032,792 Transmission and Distribution 447,671 431,142 Total Operation and Maintenance 2,360,623 2,332,583 Administrative and General:
Customer Accounts 291,109 262,748 Administrative and General 1,280,831 1,203,176 Total Administrative and General 1,571,940 1,465,924 TOTAL OPERATION AND MAINTENANCE EXPENSES 3,932,563 3,798,507 Net Revenues Before Interest income from Sinking fund 3,208,799 2,551,676 Interest income from Sinking fund 21,193 12,694 TOTAL NET REVENUES IN ACCORDANCE WITH BOND RESOLUTION $3,229,992 $2,564,370 i
See Note on Page 30.
29
GAINESVILLE REGIONAL UTILITIES SCHEDULES OF NET REVENUES IN ACCORDANCE WITH BOND RESOLUTION WASTEWATER UTILITY FUND FOR THE YEARS ENDED SEPTEMBER 30,1986 AND 1985 1986 1985 Revenues:
Wastewater Billings $7,461,805 $7,293,741 Other Revenues:
Transfers To Rate Stabilization (1,679,064) (1,529,000)
Connection Charges 1,280,601 1,101,738 Miscellaneous 29,607 7,107 Total Other Revenues (368,856) (420,155)
Interest income 594,118 576,804 TOTAL REVENUES 7,687,067 7,450,39Q Operation and Maintenance Expenses:
Operation and Maintenance:
Collection 438,379 371,425 Treatment and Pumping 2,340,678 2,312,641 Total Operation and Maintenance 2,779,057 2,684,066 Administrative and General:
Customer Accounts 212,737 212,067 Administrative and General 1,763,671 1,609,616 Total Administrative and General 1,976,408 1,821,683 TOTALOPERATION ANDMAINTENANCE EXPENSES 4,755,465 4,505,749 Net Revenues Before Interest income from Sinking Fund 2,931,602 2,944,641 Interest income from Sinking Fund 20,975 12,563 TOTAL NET REVENUES IN ACCORDANCE WITH BOND RESOLUTION $2,952,577 $2,957,204 NOTE: " Net revenues in accordance with bond resolution" differs from " Net income retained" w hich is determined in accordance with generally accepted accounting principles. Following are the more significant differences:
- Interest income does not include interest earned on construction funds and on certain debt service accounts which can only be used for certain restricted purposes, l l
- Operation and maintenance expenses do not include depreciation, amortization, or interest expense. j
- Other water and wastewater revenues include fees for connection, installation, front footage, federal grants and backflow I prevention.
- Transfers to the general fund are not included.
- Other revenues include transfers (to) from the rate stabilization fund.
- Extraordinary items are not included.
30 l
GAINESVILLE REGIONAL UTILITIES l
SCHEDULE OF COMBINING STATEMENTS OF REVENUE AND EXPENSE AND RETAINED EARNINGS FOR THE YEAR ENDED SEPTEMBER 30,1986 WASTE-ELECTRIC WATER WATER COMBINED Operating Revenues:
Sales and Service Charges $ 86,410,497 $ 6,268,636 $ 7,461,805 $100,140,938 Other Operating Revenue 893,707 17,931 29,607 941,245 TOTAL OPERATING REVENUES 87,304,204 6,286,567 7,491,412 101,082,183 Operating Expenses:
Operations and Maintenance 45,760,958 2,360,623 2,779,057 50,900,638 Administrative and General 10,349,225 1,571,940 1,976,408 13,897,573 Depreciation and Amortization 9,784,987 1,425,900 1,941,459 13,152,346 TOTAL OPERATING EXPENSES 65,895_,170 5,358,463 6,6 % ,924 77,950,557 Operating Income 21,409,034 928,104 794,488 23,131,626 Nonoperating Revenues (Expenses):
Interest Revenue 4,676,221 714,575 836,151 6,226,947 Interest Expense (17,754,092) (1,258,931) (1,492,427) (20,505,450)
Other Nonoperating Revenue 1,630,667 - - 1,630,667 TOTAL NONOPERATING REVENUES (EXPENSES) (11,447,204) (544,356) (656,276) (12,647,836)
Income Before Operating Transfers 9,961,830 383,748 138,212 10,483,790 Oprating Transfer to General Fund (8,894,293) (161,226) - (9,055,519)
Net income Retained 1,067,537 222,522 138,212 1,428,271 Retained Earnings, Beginning 144,131,019 16,560,562 10,191,995 170,883,576 Residual Equity Transfers 2,720,418 (3,180,912) 460,494 -
Amortization of Contributions in Aid of Construction - 470,080 1,014,775 1,484.855 Retained Earnings, Ending $147,918,974 $14,072,252 $11,805,476 $173,796,702 l
l 31
GAINESVILLE REGIONAL. UTILITIES SCHEDULE OF COMBINING BALANCE SHEETS SEPTEMBER 30,1986 ASSETS WASTE-ELECTRIC WATER WATER COMBINED Utility Plant:
Utility Plant in Service $334,675,763 $56,901,711 $76,875,514 $468,452,988 Construction in Progress 9,313,158 2,103,140 993,356 12,409,654 343,988,921 59,004,851 77,868,870 480,862,642 Less: Accumulated Depreciation and Amortization (74,975,289) (17,221,637) (19,506,113) (111,703,039)
NET UTILITY PLANT 269,013,632 41,783,214 58,362,757 369,159,603 Restricted Assets:
Capital Facilit'es -
Cash and investments - - 1,336,553 1,336,553 Decommissioning Reserve -
Cash and Investments 276,012 - - 276,012 Water Pollution Emergency Reserve -
Osh and Investments - 50,000 - 50,000 Utility Deposits -
Cash and investments 2,712,381 - - 2,712,381 Debt Service Fund -
Cash and Investments 31,025,829 1,809,521 1,853,363 34,688,713 Rate Stabilization Fund -
Cash and Investments 12,196,206 3,872,750 5,693,949 21,762,905 Construction Fund -
Cash and Investments 2,093,899 1,428,692 2,689,588 6,212,179 Contracts-in-Progress 2,641,554 915,885 501,340 4,058,779 Utility Plant improvement Fund -
Cash, Investments, and Receivables 1,750,923 302,512 214,387 2,267,822 Due From Other Funds 93,728 27,754 8,612 130,094 Materials inventories 3,478,882 456,912 459,670 4,395,464 TOTAL RESTRICTED ASSETS 56,269,414 8,864,026 12,757,462 77,890,902 Current Assets:
Cash and Short-Term investments 6,089,280 600,592 614,156 7,304,028 Accounts Receivable, Net 11,449,629 496,474 333,707 12,279,810 Due From (To) Other Funds 1,826,021 (136,716) (435,252) 1,254,053 Prepaid Expenses 86,712 336 1,173 88,221 inventories:
Fuel 11,126,809 - - 11,126,809 Materials and Supplies 483,497 - - 483,497 TOTAL CURRENT ASSETS 31,061,948 960,686 513,784 32,536,418 Deferred Debits 4,187,185 338,721 288,987 4,814,893 TOTAL ASSETS $360,532,179 $51,946,647 $71,922,990 $484,401.816 33
c LIABILITIES AND FUND EQUITY WASTE-ELECTRIC ~ WATER WATER ' COMBINED' Long-Term Debt and Fund Equity:
Long-Term Debt-Utilities System Revenue Bonds Payable $163,402,860 $11,357,160 $11,239,980 $186,000,000 Commercial Paper Notes Payable 33,253,287 5,660,439 10,587,274 49,501,000 Less: Unamortized Bond Discount (6,137,899) (426,476) (422,121) (6,986,4%)
Total Long-Term Debt 190,518,248 16,591,123 21,405,133 228,514,504 fund Equity-Contributions in Aid of Construction - 19,352,271 36,752,577 56,104,848 Retained Earnings 147,918,974 14,072,252 11,805.476 173,7 %,702 Total Fund Equity 147,918,974 33,424,523 48,558,053 229,901,550 TOTAL LONG-TERM DEBT AND FUND EQUITY 338,437,222 50,015,646 69,% 3,186 458,416,054 Payable from Restricted Assets:
Utility Deposits 2,712,381 - - 2,712,381 Accrued interest Payable 7,931,805 556,4 % 558,499 9,046,800 Construction Fund -
Accounts, Contracts and Retainages Payable 3,688,465 915,885 749,624 5,353,974 Due to Other Funds 1,650,870 80,719 115,743 1,847,332 Utihty Plant Improvement Fund -
Accounts Payable and Accrued Liabilities 643,819 113,549 78,225 835,593 TOTAL PAYABLE FROM RESTRICTED ASSETS 16,627,340 1,666,649 1,502,091 19,7 %,080 Current Liabilities:
Fuels Payable 2,265,829 - - 2,265,829 Accounts Payable and Accrued Liabilities 1,772,153 264,352 408,935 2,445,440 TOTAL CURRENT LIABILITIES 4,037,982 264,352 408,935 4,711,269 1 Deferred Credits 1,429,635 - 48,778 1,478,413 l Commitments and Contingencies
. (Note 9) -
TOTAL LIABILITIES AND FUND
$360,532,179 $51,946,647 $71,922,990 $484,401,816 EQUITY I
i 33 1
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GAINESVILLE REGIONAL UTILITIES SCHEDULE OF UTILITY PLANT PROPERTIES COMBINED UTILITY FUND SEPTEMBER 30,1986 UTILITY PLANT PROPERTIES BALANCE SALES AND BALANCE 9-30-85 ADDITIONS RETIREMENTS 9-30 86 Plant in Service ELECTRIC UTILITY FUND:
Production Plant $234,148,020 $ 594,857 $ 628 $234,742,249 Nuclear Fuel 2,558,166 742,557 - 3,300,723 Transmission and Distribution Plant 80,352,015 5,322,229 763,949 84,910,295 General and Common Plant 9,326,697 1,797,636 11,836 11,112,497 Plant Unclassified - 609,999 - 609,999 Plant Acquisition Adjustment 15,213 - 15,213 -
TOTM. ELECTRIC UTILITY FUND 326,400,111 9,067,278 791,626 334,675,763 WATER UTILITY FUND:
Supply, Pumping and Treatment Plant 11,638,767 121,533 - 11,760,300 Transmission and Distribution Plant 39,541,601 3,620,455 98,724 43,063,332 General Plant 1,756,870 260,558 - 2,017,428 Plant Unclassified - 60,651 - 60,651 TOTAL WATER UTILITY FUND 52,937,238 4,063,197 98,724 56,901,711 WASTEWATER UTluTY FUND:
Pumping and Treatment Plant 27,256,824 1,645,019 12,500 28,889,344 Collection Plant 41,703,916 3,246,568 114,985 44,835.499 General Plant 2,681,253 475,979 6,560 3,150,671 TOTAL WASTEWATER UTillTY FUND 71,641,993 5,367,566 134,045 76,875.514 TOTAL PLANT IN SERVICE $450,979.342 $18,498,041 $ 1,024,395 $468,452,988 Construction in Progress CONSTRUCTION FUND:
Electric Utility Fund $ 972,074 $ 7,265,753 $ 839,733 $ 7,398,094 Water Utility Fund 800,374 1,822,694 892,283 1,730,785 Wastewater Utility Fund 1,247,687 2,790,986 3,199,463 839,210 TOTAL CONSTRUCTION FUND 3,020,135 11.879,433 4.931,479 9,968,089 UTILITY PLANT IMPROVEMENT FUND:
Llectric Utility Fund 7,093,868 7,610,361 7,789,165 1,915,064 Water Utility Fund 1,201,166 2,348,932 3,177,743 372,355 Wastewater Utility Fund 307,812 2,019,648 2,173,314 154,146 TOTAL UTILITY PLANT IMPROVEMENT FUND 3,602,846 11,978,941 13,140,222 2,441,565 TOTAL CONSTRUCTION IN PROGRESS $ 6,622.981 $23,858,374 $18,071,701 $ 12,409,654 34
GAINESVILLE REGIONAL UTILITIES SCHEDULE OF ACCUMULATED DEPRECIATION AND AMORTIZATION COMBINED UTILITY FUND SEPTEMBER 30,1986 ACCUMULATED DEPRECIATION AND AMORTIZATION BALANCE SALES AND BALA',CE 9-30-85 ADDITIONS RETIREMENTS 9-30-6o ELECTRIC UTILITY FUND:
Production Plant $42,835,744 $ 6,779,294 $ (19,179) $ 49,634,217 Nuclear fuel 1,251,833 224,182 (365,209) 1,841,224 Transmission and Distribution Plant 17,749,3 % 2.135,928 1,052,677 18,882,647 General and Common Plant 3,801,946 a63,726 (351,529) 4,617,201 Plant Acquisition Adjustment 15,213 - 15.213 -
TOTAL ELECTRIC UTluTY FUND 65,654,132 9.653,130 331,973 74,975,289 WATER UTILITY FUND:
Supply, Pumping, and Treatment Plant 4,112, % 2 324,080 - 4,437,042 Transmission and Distribution Plant 10,531,945 961,078 89.856 11,403,167 General Plant 1,178.644 136,767 (66,017) 1,381,428 TOTAL WATER UTILITY FUND 15,823,551 1,421,925 23,839 17,221,637 WASTEWATER UTILITY FUND:
Pumping and Treatment Plant 6,234,284 900,440 12,500 7,122,224 Collection Plant 9,586,709 835,936 114,985 10,307,660 General Plant 1,754,956 175,603 (145,670) 2,076,229 TOTAL WASTLWATER UTILITY PLANT 17,575,949 1,911,979 (18,185) 19,506,113 TOTALS $99.053.632 $12,987,034 5 337,627 $111,703.039 l
l l
13
C O M M I T M E N T in many ways throughout this numerous committee chair- Utility line, our award-winning year, the staff of Gainesville manships within FMUA, the bi-weekly employee newsletter, Regional Utilities has continued Florida Electric Power celebrated its first anniversary to demonstrate a commitment to Coordinating Group, the Florida in June with an expanded quality of service which extends Section of the American Water circulation to include news beyond the boundaries of Works Association, and the media, consultants, and advisors.
our system. Florida Water and Pollution Initiated as a keystone for Control Operators Association. our intemal communications When Hurricane Kate devas- program, the publication has tated the Tallahassee area in in no area is the dedication become a dynamic history of November, we were among the of our employees more evident Gainesville Regional Utilities.
first Florida utilities to answer than in our continued effort to the call for assistance. Under improve service to GRU For the first time since provisions of our mutual aid customers. During our summer our revenue protection program agreement, forty GRU crewmen rush period, when thousands of was established, utility wrvice worked sixteen hour days for college students returned to thefts decreased - a result eight straight days to help Gainesville for the fall term, attributed to more rapid response restore power to the state's improved service application to complaints and to increased capital. procedures enabled our emphasis on prevention customer service staff to process measures, including meter Work accelerated during 12,000 service applications - locking devices. Estimated savings the year on GEOMAX, GRU's nearly one-quarter of our approached $430,000 in cooperative effort with Alachua residential customers - with no backbillings and projected County to establish a sophis- wait in line longer than ten loss prevention.
ticated geographic-based minutes and no wait for service automated mapping and facilities connection longer than 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br />. At the beginning of the year management system. The responsibility for our vehicle fleet computerized system will be More than 3,400 free resi- was transferred from private used to automate and maintain dential energy audits and 139 contractors to an in-house
- many existing utility activities commercial audits were operation, resulting in a complete now done manually, including performed by our staff and by reorganization of the fleet work order processing and GRU-trained contract auditors, management system, an improved property accounting. GRU contributing substantially to a level of service, and a $500,000 activity this year focused on total of more than 14,000 reductien in annual costs.
Installation of the electric system residential audits completed since Responsibility for rehabilitation of portion of the mapping and the program's inception. Fifteen the city's transit system vehicles facilities management system, thousand free energy and water was also accepted as part of an development of software for conservation devices were effort to centralize the city's entire water and wastewater systems, installed, and a variety of financial fleet operation, and development of software incentive programs were interfaces for special promoted to encourage customer An awareness prevails among applications packages. Installation of energy saving the family of GRU employees measures. The Energy Camival, which is the basis of our Our active participation an energy awareness play commitment to Gainesville and in Florida's utility industry co<leveloped by GRU, the Alachua County: this is our was highlighted by GRU staff Hippodrome Theatre for Young home. We have chosen it; we occupancy ofleadership Audiences, and the Florida value it; and we accept as our positions within several Division of Cultural Affairs, trust the preservation and professional organizations - has now been viewed by over improvement ofits remarkable including the presidency of the 120,000 students and teachers quality of life.
Florida Municipal Utilities in the course of three nation- 1 Association (FMUA) and wide tours.
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R A T E S S C H E D U L E Charges for services in effect at the close of the fiscal year September 30,1986, for major customer classes.
Electric The following monthly electric rate schedules are " base rates" and include a fuels charge of 25 mills per kilowatt hour. The additional variable monthly fuel adjustment charge is not included. The minimum bill is the Customer Charge plus any applicable demand charge.
Residential Customer Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.44 Energy charge per kilowatt hour (kWh)
First 750 kWh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.0612/kWh Over 750 kWh . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.0649/kWh General Service Non Demand (A demand of 50 kilowatts (kW) or greater has not been established)
Customer Cha rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $9.13 Energy Cha rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.0764/kWh General Service Demand (Established demand of 50 kW, but less than 1,000 kW)
Customer Charge . . . . . . . . . . . . . . . ..........................$15.82 Energy Cha rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.0540/kWh Demand Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.87/kW Large Power (Established demand of 1,000 kW or greater)
Cu st o m e r Ch a rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 60.84 Energy Cha rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.0473/kWh Demand Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4. 2 6/kW Water The minimum bill is the Customer Charge.
Cu stomer Cha rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.54 Water Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.72 per thousand gallons Wastewater The minimum bill is the Customer Charge.
Cu stomer Cha rge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.86 Wastewater Charge . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.86 per thousand gallons Additional rate schedules, available upon request, include: Time-Of Use rate for electric customers, wastewater rates for residential customers not connected to the system but sub-ject to rates and charges, and wastewater rates for residential customers obtaining water from unmetered private wells and discharging into the system.
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ADMINISTRATION BUILDING A project of major interest on the $7.5 million five- Kelly Generating Station and throughout GRU during 1986 was story structure, which will be the Operations Center complex, the our new Administration Building, new home for numerous GRU building will be a transitional projected for completion in administrative and operations structure designed to blend December 1988. Planning and departments presently occupying harmoniously with the character design activities were conducted three separate buildings. The of both neighborhoods.
by utility staff and the local firm of consolidation of activities within a Moore, May, Graham, Brame, single structure offers improved in keeping with GRU's commit-Poole Architects Inc., including efficiency in communications and ment to the cultural component an assessment of occupants' more effective direct contacts of our community, and in needs, initial conceptual design, with our customers. conjunction with Gainesville's Art and acquisition of property for in Public Places program, the building site at Southwest Bounded on the north by $105,000 of the building cost has Fourth Avenue and Third Street. a residential portion of the been earmarked for purchase of city's Downtown Redevelopment an appropriate work of a'rt to Construction is expected Project and on the south by an enhance the design.
to begin in June 1987 industrial complex including our
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