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Home My WebLink AboutLansing Board of Water and Light FY 2020-2025 Budget and Forecast City Clerk Filing-Final Lansing Board of Water and Light IN P.O. Box 13007 1201 S.Washington Ave. Hometown People. Hometown Power: Lansing,MI 48912 Electronic Delivery June 5, 2019 Chris Swope, City Clerk City of Lansing 124 W. Michigan Avenue, 9t" Floor Lansing, MI 48933 RE: Budget for Fiscal Year Ending June 30, 2020 Capital Forecast for Fiscal Years 2020-2025 Dear Mr. Swope: In accordance with provisions of the Lansing City Charter, Article 5, Chapter 2, Section 5- 203.5, and Section 5-203.6, a copy of the Lansing Board of Water and Light Budget for Fiscal Year ending June 30, 2020, and a copy of the Lansing Board of Water and Light Capital Improvement Plan for Fiscal Years 2020-2025 are attached for filing with your office. The Board of Commissioners adopted the Budget and accepted the Capital Forecast for Fiscal Years 2020-2025 at a regular board meeting held May 28, 2019. Respectfully submitted, M. Denise DNitallys D—ib M.Denise Griffin DN:cn=M.Denise Griffin,-Lansing Board of Water and Llght,o,, email=MDeni-G riff;n@Ib.1.1 m Griffin Date 2019.06.0511 23 23 0400 M. Denise Griffin Corporate Secretary PDF Attachment Electronic Copy: Dick Peffley,General Manager Heather Shawa,Chief Financial Officer Andy Schor, Mayor City of Lansing, MI LBWL Commissioners Lansing City Council President, Carol Wood,and Councilmembers FY 2020 Income Statement Electric Water Steam Chilled Water Total Sales(MWh,ccf,Mlb,ton-hrs) 2,623,854,679 8,498,645 701,802 10,864 Operating Revenue Residential $ 97,146,288 $ 18,150,532 $ 17,565 $ - $ 115,314,385 Commercial $ 159,445,743 $ 15,528,362 $ 8,472,581 $ 6,295,907 $ 189,742,593 Industrial $ 44,654,998 $ 2,116,928 $ 3,174,091 $ - $ 49,946,018 Wholesale $ 19,989,327 $ 3,733,611 $ - $ $ 23,722,939 Other $ 13,136,138 $ 6,844,898 $ 1,407,320 $ - $ 21,388,356 Total Operating Revenue $ 334,372,495 $ 46,374,332 $ 13,071,557 $ 6,295,907 $ 400,114,291 Operating Expenses Fuel and Purchased Power $ (118,817,397) $ (5,516,336) $ (3,666,562) $ - $ (128,000,295) FY • • • Depreciation $ (35,987,342) $ (7,866,012) $ (3,078,557) $ (1,529,719) $ (48,461,630) Other Operating Expenses $ (113,234,869) $ (32,564,689) $ (5,292,196) $ (4,245,509) $ (155,337,263) Total Operating Expenses $ (268,039,608) $ (45,947,037) $ (12,037,315) $ (5,775,228) $ (331,799,187) Statement Total Operating Income $ 66,332,887 $ 427,295 $ 1,034,243 $ 520,679 $ 68,315,103 Non Operating Income/(Expenses) Return on Equity to City $ (19,811,394) $ (2,741,207) $ (779,265) $ (377,754) $ (23,709,620) Interest Expense $ (25,070,972) $ (3,083,546) $ (2,476,931) $ (898,324) $ (31,529,773) Other Non Operating Income/(Expenses) $ 3,736,828 $ 1,311,591 $ 110,485 $ 147,958 $ 5,306,862 Total Non Operating Income/(Expenses) $ (41,145,538) $ (4,513,162) $ (3,145,711) $ (1,128,120) $ (49,932,531) Total Net Income/(Loss) $ 25,187,350 $ (4,085,867) $ (2,111,469) $ (607,442) $ 18,382,572 Approved Rate Increase-Effective 02/01/2020 3.0% 7.5% 7.5% 0.0% Return on Assets 6.42% -0.71% 0.24% 0.68% 2.73% Target Return on Assets 4.66% 4.66% 4.66% 4.66% 4.66% Hometown People.Hometown Power, Consolidated Cash Flow FY 2020 Beginning Cash(O&M&Receiving Fund) $ 72,000,000 Net Income $ 18,382,572 Depreciation and Loss on Disposal of Assets $ 49,875,575 DB and VEBA $ (826,062) Borrowing $ - Withdrawal from/(Deposit to) Reserve for Future Construction $ (10,500,000) Commodity Cost Adjustment $ (12,609,795) Withdrawal from Bond Construction $ 271,701,998 Environmental $ 807,262 Gas Pipeline Payments(Refundable)/Refunded $ (17,840,000) Total Sources of Cash $ 298,991,551 Principal Payments on Bonds $ (7,145,000) Cash Flow Principal Payments on Other Debt(CSO) $ (657,988) Capital Expenditures(Excluding Delta Energy Park) $ (58,760,214) Capital Expenditures for Delta Energy Park(Excluding Gas Pipeline) $ (207,098,523) Gas Pipeline Payments(Non-Refundable) $ (11,280,000) REP/EWR $ (1,844,452) Bond Construction & Designated Fund Income & Deposit $ (4,156,653) Total Uses of Cash $ (290,942,829) Net Cash Increase(Decrease) $ 8,048,721 Ending Cash(O&M&Receiving Fund) $ 80,048,721 Days Cash on Hand 178 Minimum Cash Reserve Requirement 154 Hometown People.Hometown Power. Capital Budget Summary FY 2020 Utility Electric $ 24,757,558 Water $ 8,029,882 Steam $ 2,999,923 Chilled Water $ 450,465 Common $ 22,522,386 Capital Budget Excluding Delta Energy Park $ 58,760,214 Delta Energy Park $ 236,218,523 FY 202OCapital Total Capital Budget $ 294,978,737 Location Budget Eckert $ 148,000 Erickson $ 1,236,546 REO Plant $ 280,000 T&D $ 25,702,562 Dye/Cedar $ 2,553,882 Chiller Plant $ 562,000 Moore's Park (Hydro) $ 1,308,968 Delta Energy Park $ 236,218,523 Other $ 26,968,256 Total Capital Budget $ 294,978,737 Hometown People.Hometown Power. 6-Year Capital by Utility and Location FY 2020 FY 2021 FY 2022 3 FY 2024 FY 2025 jj Forecast Total Utility Electric $ 24,757,558 $ 31,534,214 $ 38,425,296 $ 40,760,462 $ 57,849,391 $ 34,549,191 $ 227,876,112 Water $ 8,029,882 $ 9,368,948 $ 9,569,600 $ 10,293,900 $ 10,991,800 $ 9,828,000 $ 58,082,130 Steam $ 2,999,923 $ 3,268,850 $ 2,941,103 $ 2,970,861 $ 3,071,917 $ 3,451,267 $ 18,703,921 Chilled Water $ 450,465 $ 10,706 $ 10,952 $ 1,772,801 $ 2,412,011 $ 11,500 $ 4,668,435 Common $ 22,522,386 $ 18,659,502 $ 6,912,922 $ 4,206,022 $ 4,247,331 $ 8,289,590 $ 64,837,753 Capital Budget Excluding Delta Energy Park $ 58,760,214 $ 62,842,220 $ 57,859,873 $ 60,004,046 $ 78,572,450 $ 56,129,548 $ 374,168,351 Delta Energy Park $ 236,218,523 $ 77,533,731 $ - $ - $ - $ - $ 313,752,254 Capital Total Capital Budget $ 294,978,737 $ 140,375,951 $ 57,859,873 $ 60,004,046 $ 78,572,450 $ 56,129,548 $ 687,920,605 Location •vement Eckert $ 148,000 $ - $ - $ - $ - $ - $ 148,000 Impr Plan Erickson $ 1,236,546 $ 618,047 $ 31,761 $ 32,492 $ 33,239 $ 33,239 $ 1,985,324 REO Plant $ 280,000 $ - $ - $ - $ 6,000,000 $ 6,000,000 $ 12,280,000 T&D $ 25,702,562 $ 35,077,123 $ 46,509,190 $ 50,783,035 $ 62,869,273 $ 38,748,719 $ 259,689,902 Dye/Cedar $ 2,553,882 $ 3,288,948 $ 3,004,600 $ 3,220,900 $ 3,021,800 $ 3,058,000 $ 18,148,130 Chiller Plant $ 562,000 $ - $ - $ 1,761,597 $ 2,400,807 $ - $ 4,724,404 Moore's Park(Hydro) $ 1,308,968 $ 1,098,600 $ 901,400 $ - $ - $ $ 3,308,968 Delta Energy Park $ 236,218,523 $ 77,533,731 $ - $ - $ - $ $ 313,752,254 Other $ 26,968,256 $ 22,759,502 $ 7,412,922 $ 4,206,022 $ 4,247,331 $ 8,289,590 $ 73,883,623 Total Capital Budget $ 294,978,737 $ 140,375,951 $ 57,859,873 $ 60,004,046 $ 78,572,450 $ 56,129,548 $ 687,920,605 Hometown People.Hometown Power.