SFPUC - Annual Reports Stronger Today | Page 12

11 Annual Report for the Fiscal Year Ending June 30, 2013 12 Scan this code for our Comprehensive Annual Financial Report (CAFR) For the last three fiscal years, this report has won the prestigious “Award for Outstanding Achievement in Popular Annual Financial Reporting” from the Government Finance Officers Association. Our investment grade credit ratings reflect our strong financial standing. Aa3 from Moody’s and AA- from S&P are considered very high quality investment grades, with a low credit risk and strong capacity to meet financial obligations. This award recognizes our commitment to the highest standards of fiscal responsibility and transparency. This report is intended to increase public awareness by providing an overview of our financial condition. Credit Ratings While the financial information is drawn from the audited financial statements in our fiscal year 2012-13 Comprehensive Annual Financial Report, using the full accrual basis of accounting, this report is not audited and not intended to comply with generally accepted accounting principles (GAAP) as note disclosures have been excluded from this report. For complete financial information and disclosures, our Comprehensive Annual Financial Report is available online at sfwater.org/Finance. Current assets Capital assets Fiscal Year Water Standard & Poor’s Moody’s Investor Services 2012-13 2011-12 2010-11 AA- Aa3 AA- Aa3 AAAa2 Power Sewer Standard & Poor’s Moody’s Investor Services $7.78B $2.68B $5.10B $5.87B AA- Aa3 AA- Aa3 $7.78B $0.55B $5.26B $1.97B $5.48B Current liabilities Non-current liabilities Net position 2011 $6.37B AAAa3 $2.55B $2.15B $4.22B $2.41B $6.37B $0.47B $3.95B $1.95B Average Borrowing Rate Water 4.33% Power 0.92% Sewer 2.98% 82 Average Monthly Water and Sewer Bill ($) $ Sewer Cost per Person/Day $ 0.91 $0.0104 per gallon (just a penny) Total Cost per Gallon, Water and Sewer $ 0.018 (less than a penny) 1.3% 2010 2013 $5.19B In the end, the Rim Fire burned in just 2% of the Hetch Hetchy watershed in Yosemite National Park. It damaged both water and power assets in the areas around Early Intake, Cherry Lake, Lake Eleanor, and along Mather Road to O’Shaughnessy Dam. Our prudent risk management and disaster preparedness in the years before the fire will enable us to recover some damage costs under insurance policies maintained for essential assets. These funds will supplement applications for State and Federal disaster aid fund reimbursements. $8.42B Our Statements of Net Position reflect a strong and healthy financial condition as of June 30, 2013. Our net position (assets exceeded liabilities) has been on an upward trend for the last five fiscal years, increasing from $2.0 billion to $2.4 billion, 75% of it represented net investment in capital assets. While total assets increased from last fiscal year by $0.6 billion in restricted bond proceeds and capital assets, liabilities only slightly increased from debt issuances to fund the capital projects. $1.65B $3.55B $5.19B $0.25B $3.05B $1.90B 2009 $3.79B $0.62B $3.17B $3.79B $0.55B $1.33B $1.92B The Statements of Net Position summarize resources balanced against debt and other liabilities as of June 30, using the full accrual basis of accounting. Full accrual accounting records revenues when earned and liabilities when incurred, regardless of the timing of cash flows. There are three components in the statement of net position: Rim Fire Total Combined Bill as % of San Francisco Median Household Income $0.53B $8.42B Single Family Residential FY 2012-13 Water $0.0078 per gallon 2012 Not Rated Keeping our rates affordable FY 2012-13 Five-Year Comparison of Net Position by Category (1) Assets, items owned or controlled, represent resources used to provide future public services, or to pay liabilities incurred for services provided in prior periods; (2) Liabilities, debts owed and represent clai