San Antonio Water System

CONDENSED MONTHLY FINANCIAL REPORT

APRIL 2020

San Antonio, Texas 

CONDENSED MONTHLY FINANCIAL REPORT SAN ANTONIO WATER SYSTEM

April 30, 2020

Attached is the monthly financial report of the San Antonio Water System (SAWS) for the month ended April 30, 2020. This report presents financial and management information for all funds, activities and programs for which the Board of Trustees has been given responsibility to manage and control. FINANCIAL HIGHLIGHTS

SAWS’ net position increased by $14.6 million during the month. On April 15th, SAWS recorded $929.3 million in capital assets and a contract liability

associated with the commencement of the operational phase for the Vista Ridge Pipeline Project (Vista Ridge).

Operating revenues for the month of $55.3 million were $7.0 million unfavorable to budget but $0.1 million more than a year ago. The provision for uncollectible accounts was increased from 2.0% of revenues to 3.0% due to the continued increase in delinquencies as a result of the COVID-19 pandemic.

Operating expenses before depreciation for the month of $26.8 million were $8.5 million favorable to budget and $1.2 million less than the prior year.

Net interest expense related to debt was $2.3 million favorable to budget for the month but $0.5 million more than last year.

SAWS’ net income before capital contributions for the month of $2.5 million was $2.0 million favorable to budget but $4.7 million less than 2019.

Capital contributions for the month were $12.1 million compared to the budget of $14.4 million and $15.2 million in 2019.

OVERALL FINANCIAL CONDITION

SAWS’ total assets and deferred outflows of resources increased $1,103.4 million primarily due to an increase in the investment in capital assets related to Vista Ridge and an increase in cash and investments. Total liabilities and deferred inflows of resources increased $1,088.6 million primarily due to an increase in the contract payable related to Vista Ridge and an increase in commercial paper.

April 30, 2020($ in thousands)

Assets 8,008,611$ Deferred Outflows of Resources 139,424 Liabilities (4,607,429) Deferred Inflows of Resources (12,794) Total Net Position 3,527,812$

Net Investment in Capital Assets 2,785,020$ Restricted Net Position 342,396 Unrestricted Net Position 400,396 Total Net Position 3,527,812$

Working capital totaled $601.5 million and includes an operating reserve of $72.7 million in accordance with SAWS’ ordinance requirement of a two-month reserve amount based upon the current fiscal year’s budget for operating and maintenance expense. SAWS’ net position ratio was 43.3% at April 30, 2020, 49.9% at March 31, 2020 and 47.3% at April 30, 2019. SAWS’ bond ordinance requires SAWS to set rates and charges sufficient to maintain a debt coverage ratio of at least 1.25x the current year annual debt service on outstanding senior lien debt. The following chart includes SAWS’ current year debt coverage ratios for both senior lien and total bonded debt. The improvement in senior lien debt coverage since April 2019 reflects a reduction in senior lien debt service, resulting from the fact that no debt has been issued at the senior lien level since 2012. In December 2019, SAWS began reporting debt service coverage net of certain non-cash revenues and expenses. Prior periods reflect the change in presentation.

As of April 30, 2020, SAWS is in compliance with the terms and provisions of the ordinances and documents related to its outstanding bonds and tax-exempt commercial paper. RESULTS OF OPERATIONS The following table shows a consolidated summary of SAWS’ Statement of Revenues, Expenses and Changes in Net Position for the month of April 2020 with comparisons to both the budget and the prior year.

Debt Coverage Ratios

04/30/20 03/31/20 04/30/19

Current Year Debt Service - Senior Lien Debt 10.20 10.25 7.39

Current Year Debt Service - Total Debt 2.22 2.23 1.94

($ in thousands) Fav (Unfav) Fav (Unfav)

April-20 Variance April-19 Variance

Actual Budget* To Budget Actual To Prior Year

18,301$ 21,597$ (3,296)$ 15,119$ 3,182$

15,316 17,181 (1,865) 16,771 (1,455)

20,875 22,596 (1,721) 22,475 (1,600)

773 868 (95) 770 3

Total operating revenues 55,265 62,242 (6,977) 55,135 130

26,773 33,279 6,506 27,993 1,220

15,158 15,352 194 12,944 (2,214)

Total operating expenses 41,931 48,631 6,700 40,937 (994)

13,334 13,611 (277) 14,198 (864)

11 - 11 11 -

1,008 1,667 (659) 2,589 (1,581)

7,421 9,756 2,335 8,496 1,075

Interest Expense - Contracts Payable 2,039 2,039 - - (2,039)

2,175 2,447 272 1,478 (697)

187 465 278 (370) (557)

2,531 571 1,960 7,194 (4,663)

Contributions in Aid of Construction - - - 548 (548) 4,257 8,136 (3,879) 8,779 (4,522)

7,834 6,258 1,576 5,835 1,999

Total Contributions 12,091 14,394 (2,303) 15,162 (3,071)

14,622$ 14,965$ (343)$ 22,356$ (7,734)$

Water Delivery System

Operating Revenues

Water Supply System

Wastewater System

Chilled Water System

Operating Expenses Before Depreciation

Depreciation and Amortization Expense

Operating Income

Miscellaneous Revenues

Investment income

Interest Expense - Debt

Payments to the City of San Antonio

budget reflected on the Schedule of Sources and Uses reflects these costs on a cash basis, which is utilized for rate-making purposes.

Other Non-operating Expense

Net Income (Loss) Before Capital Contributions

Capital Recovery Fees

Plant Contributions

Change in Net Position

*Budget includes adjustments to certain benefit related costs in order to comply with generally accepted accounting principles. The

Total operating revenues were $7.0 million unfavorable to budget but $0.1 million more than April 2019. Water delivery and supply revenues of $33.6 million were $5.2 million unfavorable to budget but $1.7 million more than April 2019. The COVID-19 pandemic significantly impacted general class consumption, which factored into billed water usage being 8.4% less than budget for the month. In addition, the provision for uncollectible accounts was increased from 2.0% of revenues to 3.0% due to the anticipated increase in delinquencies as a result of the COVID-19 pandemic. The increase in revenues from last year is primarily due to the 52.4% water supply rate adjustment, which went into effect on February 1, 2020, which more than offset the 6.3% decrease in billed usage from April 2019.

Wastewater revenue for the month of $20.9 million was $1.7 million unfavorable to budget and $1.6 million less than April 2019. The unfavorable variance to budget was primarily due to billed usage being 5.4% less than budget combined with the increase in the provision for uncollectible accounts as a result of the COVID-19 pandemic. The decrease from last year is primarily due to billed usage being 5.8% less than last year combined with the increase in the provision for uncollectible accounts. The residential Average Winter Consumption (AWC) of 4,992 gallons that went into effect in April 2020 was consistent with budget and 3.4% more than the previous AWC that was in effect in April 2019.

For rate-making purposes and Sources & Uses reporting, the Vista Ridge payment is recorded as an operating expense under water options. However, to comply with Generally Accepted Accounting Principles, the financial statements reflect the Vista Ridge infrastructure payment as a financed purchase and the water lease payments and O&M payment as operating expenses.

Operating expenses before depreciation of $26.8 million were $8.5 million favorable to budget for the month and $1.2 million less than a year ago. The favorable variance to budget is primarily due to favorable variances in water options, utilities and contractual professional services. The decrease from last year is primarily due to decreased spending on water options.

Investment income for the month was $0.7 million unfavorable to budget and $1.6 million less than April 2019. The yield on SAWS’ investment portfolio was 1.54% for the month compared to the budgeted yield of 2.00% and 2.5% earned on the portfolio a year ago. The unfavorable variance to budget is primarily due to an unfavorable $0.6 million mark to market adjustment recorded in April. The decrease in yield and investment balances from last year combined with the unfavorable mark to market adjustment resulted in the decrease in investment income from last year.

Interest expense for the month was $2.3 million favorable to budget but $1.0 million more than April 2019. The conservative nature of the budgeting process, which ensures that current rates are sufficient to support the current year’s construction program, contributed to the favorable variance from budget. The decrease from last year is due to the interest expense from the Vista Ridge contract payable.

In April 2020, capital contributions included $4.3 million in capital recovery fees and $7.8 million in plant contributions from developers. Capital recovery fees and plant contributions can vary significantly from month-to-month but are an indication of development activity in the San Antonio region. Growth in the number of customer connections averaged 2.0% over the last 12 months (May 2019 - April 2020) and 1.7% for the preceding 12 month period (May 2018 - April 2019).

CASH FLOWS

Cash and cash equivalents increased $223.3 million during April 2020. Cash inflows during the month included $150.1 million from the issuance of commercial paper, $73.3 million from investing activities, $32.4 million from operations and $4.3 million in proceeds from developers. Cash outflows for the month consisted primarily of $31.7 million spent on the acquisition and construction of property, plant and equipment and $2.7 million spent on contracts payable.

The following table summarizes the Capital Improvement Programs (CIP) from 2018 through 2020. In order to fully execute the planned CIP, SAWS is projected to award $666.6 million in additional capital contracts. Additionally, outstanding commitments on awarded contracts total $333.1 million at April 30, 2020.

($ in millions) Original Revised Percent

Plan Year Plan Plan Commitments Committed

CY2020 $ 608.9 $ 613.0 $ 51.7 8.4%CY2019 377.3 360.5 281.7 78.1%

CY2018 391.4 428.7 416.8 97.2%

$ 1,377.6 $ 1,402.2 $ 750.2 53.5%

CONDENSED MONTHLY FINANCIAL REPORT SAN ANTONIO

April 30, 2020

Table of Contents

Statement of Net Position .................................................................................................................................... 1 - 2 Statement of Revenues, Expenses and Changes in Net Position ................................................................... 3 Statement of Cash Flows ...................................................................................................................................... 4 - 5 Consolidating Schedule of Sources and Uses of Funds – Current Month ................................................... 6 Consolidating Schedule of Sources and Uses of Funds – Year-to-Date ....................................................... 7 Consolidating Schedule of Sources and Uses of Funds – Water Supply – Current Month ....................... 8 Consolidating Schedule of Sources and Uses of Funds – Water Supply – Year-to-Date ........................... 9 Operation and Maintenance Expense by Account ........................................................................................... 10 - 11 Investment Portfolio ............................................................................................................................................. 12 Key Financial Ratios ............................................................................................................................................... 13 Construction in Progress Summary – Total ....................................................................................................... 14 - 15 Statistical Data ........................................................................................................................................................ 16

San Antonio Water SystemSTATEMENT OF NET POSITION

April 30, 2020

CURRENT ASSETS 2020 2019

Cash and cash equivalents $ 195,535,556 $ 200,569,323 Investments 311,882,954 311,078,523 Accrued interest receivable 3,330,075 4,213,007 Accounts receivable - net of allowance for uncollectable accounts of $10,508,598 and $9,296,647 respectively 74,404,528 69,296,014 Inventory - materials and supplies 5,954,839 5,758,278 Prepaid expenses 7,349,009 7,060,726

Total current unrestricted assets 598,456,961 597,975,871

RESTRICTED ASSETS

Debt Service Fund Cash and Cash Equivalents 141,437,311 89,784,462 Investments 6,619,412 60,399,437

Construction Funds Investments 24,225,948 15,939,246

Operating Reserve - System Fund 72,663,600 58,407,758 Total current restricted assets 244,946,271 224,530,903

Total current assets 843,403,232 822,506,774

NONCURRENT ASSETS

Restricted Noncurrent Assets Reserve fund:

Cash and cash equivalents 16,620,664 10,101,164 Investments 24,767,594 78,326,577 Construction funds:

Cash and cash equivalents 347,101,333 194,112,047 Investments 128,129,094 227,971,202

CAPITAL ASSETS Utility plant in service 7,854,747,538 6,565,948,296 Less allowance for depreciation 2,245,407,575 2,122,531,865

5,609,339,963 4,443,416,431 Land, water rights and other intangible assets 365,611,891 363,728,616 Construction in Progress 673,637,022 520,528,631

Total capital assets 6,648,588,876 5,327,673,678

TOTAL ASSETS 8,008,610,793 6,660,691,442

DEFERRED OUTFLOWS OF RESOURCES Loss on bond refunding 29,095,166 40,153,885 Deferred outflows - Asset Retirement Obligations 32,986,638 32,510,735 Deferred outflows - pension & OPEB plans 60,445,873 33,410,330 Derivative Instrument 16,896,744 10,201,384

TOTAL DEFERRED OUTFLOWS OF RESOURCES 139,424,421 116,276,334

TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $ 8,148,035,214 $ 6,776,967,776

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES

1

San Antonio Water System

STATEMENT OF NET POSITION - continuedApril 30, 2020

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION

2020 2019CURRENT LIABILITIES Accounts payable $ 24,425,712 $ 23,616,082 Customers' deposits 16,046,435 15,669,110 Third party billing collections payable 1,325,930 1,288,083 Contract payable within one year 15,233,658 - Accrued vacation pay 6,599,120 6,564,694 Accrued payroll and benefits 3,814,726 3,105,057 Accrued claims payable 4,639,743 4,940,345 Accrued stormwater services 3,990,754 3,862,592 Health Insurance Payable 2,495,020 2,619,540 Sundry payables and deferred income 3,154,562 5,214,694

Total current unrestricted liabilities 81,725,660 66,880,197

LIABILITIES PAYABLE FROM RESTRICTED FUNDSDebt Service Fund

Accrued interest payable 49,549,251 54,371,096 Construction funds:

Contract retainage payable 24,071,733 15,368,414 Sundry payables 154,215 570,832

Revenue bonds payable within one year 86,445,000 87,060,001 Total current restricted liabilities 160,220,199 157,370,343

Total current liabilities 241,945,859 224,250,540

LONG-TERM LIABILITIES Contract payable after one year 913,436,749 - Asset Retirement Obligations 36,061,935 33,637,663 Accrued vacation payable 4,983,283 4,320,771 Net OPEB Liability 78,691,307 88,179,734 Net pension liability 81,991,570 38,919,638 Derivative Instrument 19,626,291 13,270,720 Commercial paper notes 358,874,999 255,695,000 Revenue bonds payable after one year 2,629,970,000 2,710,634,999 Unamortized premium 242,607,972 197,486,009 Less unamortized discount (760,505) (801,477)

Total long-term liabilities 4,365,483,601 3,341,343,057 Total Liabilities 4,607,429,460 3,565,593,597

DEFERRED INFLOWS OF RESOURCES Deferred Inflows - pension & OPEB plans 12,794,059 23,847,653

TOTAL DEFERRED INFLOWS 12,794,059 23,847,653

TOTAL LIABILITIES & DEFERRED INFLOWS OF RESOURCES 4,620,223,519 3,589,441,250

NET POSITIONRestricted:

Net investment in capital assets 2,785,019,974 2,363,107,373 Restricted for construction 152,580,423 217,698,981 Restricted for debt service 98,507,472 95,812,800 Restricted for debt service reserve 18,643,960 55,846,947 Restricted for operating reserve 72,663,600 58,407,758

Total Restricted Net Position 3,127,415,429 2,790,873,859 Unrestricted Net Position 400,396,266 396,652,667

TOTAL NET POSITION $ 3,527,811,695 $ 3,187,526,526

2

San Antonio Water SystemSTATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITIONFour months ended April 2020

Variance 2020 YTD 2020 YTD 2019 YTD

Actual Budget* Actual To Budget To Prior YearOperating revenues:

Water Resources - Misc. $ 483,496 $ 1,053,736 $ 663,615 $ (570,240) $ (180,119)

Water Supply Fee 62,901,198 65,060,349 42,584,124 (2,159,151) 20,317,074 EAA/TCEQ Fee 7,262,228 7,686,739 7,232,402 (424,511) 29,826 Recycle Water 1,855,119 1,900,195 1,797,371 (45,076) 57,748 Stormwater 1,678,234 1,734,664 1,740,461 (56,430) (62,227) Metered Water 64,918,510 66,675,078 63,712,687 (1,756,568) 1,205,823 Conservation Metered Water 3,062,550 2,905,642 2,886,006 156,908 176,544 Wastewater service charges 89,093,050 89,529,985 91,179,998 (436,935) (2,086,948) Chilled water 3,029,678 3,471,784 2,930,095 (442,106) 99,583 Less: Uncollectible accounts (3,991,147) (1,673,628) (1,641,471) (2,317,519) (2,349,676) Total operating revenues 230,292,916 238,344,544 213,085,288 (8,051,628) 17,207,628

Operating expenses: Salaries and fringe benefits 54,293,518 55,852,053 53,370,795 1,558,535 (922,723) Contractual services 50,781,495 62,427,026 50,593,842 11,645,531 (187,653) Materials & supplies 7,627,440 8,313,150 7,539,171 685,710 (88,269) Other charges 1,591,126 4,002,612 2,773,807 2,411,486 1,182,681 Capitalized cost (10,153,684) (10,640,051) (10,058,849) (486,367) 94,835 Total operating expenses before depreciation 104,139,895 119,954,790 104,218,766 15,814,895 78,871 Depreciation and Amortization expense 54,682,106 55,127,008 51,166,339 444,902 (3,515,767) Total operating expenses 158,822,001 175,081,798 155,385,105 16,259,797 (3,436,896) Operating income (loss) 71,470,915 63,262,746 57,700,183 8,208,169 13,770,732

Non-operating revenues: Miscellaneous revenue 44,122 - 44,138 44,122 (16) Interest earned 6,699,366 6,666,668 9,458,686 32,698 (2,759,320) Gain/(Loss) on Investments - Mark to Market 4,298,242 - 2,027,374 4,298,242 2,270,868 Total non-operating revenues 11,041,730 6,666,668 11,530,198 4,375,062 (488,468)

Non-operating expenses:

Debt issuance costs 2,341,644 989,688 1,019,294 (1,351,956) (1,322,350)

Other financing charges 841,772 829,556 817,420 (12,216) (24,352) Interest expense: Revenue bonds, contracts and commercial paper 37,391,245 44,952,493 39,855,583 7,561,248 2,464,338 Capitalized interest 2,039,132 2,039,132 - - (2,039,132) Amortized discount/premiums/Loss on refunding (7,069,349) (5,929,572) (6,202,175) 1,139,777 867,174 Loss (gain) on defeased debt (247,056) - - 247,056 247,056 Loss (gain) on sale of fixed assets (215,864) - (567,666) 215,864 (351,802) Transfers to GKDA 25,940 40,800 23,262 14,860 (2,678) Transfers to City of San Antonio 9,077,360 9,372,089 5,707,827 294,729 (3,369,533) Total non-operating expenses 44,184,824 52,294,186 40,653,545 8,109,362 (3,531,279)

Net income (loss) before capital contributions 38,327,821 17,635,228 28,576,836 20,692,593 9,750,985

Capital contributions:

Contributions in aid of construction 600,400 - 3,754,536 600,400 (3,154,136) Capital recovery fees 29,748,661 32,052,401 31,604,103 (2,303,740) (1,855,442) Plant contributions 28,619,210 25,033,336 17,895,883 3,585,874 10,723,327 Total capital contributions 58,968,271 57,085,737 53,254,522 1,882,534 5,713,749

CHANGE IN NET POSITION 97,296,092 74,720,965 81,831,358 22,575,127 15,464,734

NET POSITION, beginning balances 3,430,515,603 3,430,515,603 3,105,695,168

NET POSITION, ending balances $ 3,527,811,695 $ 3,505,236,568 $ 3,187,526,526

*Budget includes amounts for non-cash items not included in the Board approved Sources & Uses budget.

3

2020 2019CASH FLOWS FROM OPERATING ACTIVITIES

Cash received from customers 229,219,478$ 213,074,353$ Cash received from stormwater and third party billing 21,329,437 20,567,546 Cash paid to vendors for operations (76,322,160) (73,758,960) Cash paid to employees for services (45,257,201) (44,192,732) Cash paid to stormwater and third party entities (20,002,025) (20,580,232)

Net cash provided by operating activities 108,967,529 95,109,975

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESPayments to the City of San Antonio (7,117,349) (4,093,668) Payments to other entities (46,491) (43,427)

Net cash used for noncapital financing activities (7,163,840) (4,137,095)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESProceeds from sale of capital assets 246,598 674,248 Proceeds from developers for plant construction 29,748,661 31,604,103 Proceeds from contributions in aid of construction 600,400 5,993,021 Payments for the acquistion and construction of plant and equipment (128,025,601) (123,605,214) Payment on contract payable (655,231) - Payment of interest on contract payable (2,039,132) - Proceeds from commercial paper 170,059,999 40,000,000 Proceeds from revenue bonds 148,835,376 167,905,069 Payment for retirement/refunding of revenue bonds (6,508,906) - Proceeds from cash defeasance of bonds 247,056 - Payment of interest on commercial paper (1,863,019) (1,752,348)

Payment of interest on revenue bonds (1,652,435) - Payment for bond issue costs (1,429,991) (1,019,295) Payment for finance charges (689,955) (972,763)

Net cash used for capital and related financing activities 206,873,820 118,826,821

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of investments (111,193,390) (57,152,598) Maturity of investments 203,900,711 202,849,093 Interest income 6,751,532 9,081,204

Net cash provided (used) by investing activities 99,458,853 154,777,699

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 408,136,362 364,577,400

CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR 292,558,502 129,989,596 CASH AND CASH EQUIVALENTS, AT END OF PERIOD 700,694,864$ 494,566,996$

San Antonio Water SystemSTATEMENT OF CASH FLOWSFour months ended April 2020

4

2020 2019

RECONCILIATION OF CASH AND CASH EQUIVALENTS PER STATEMENT OF CASH FLOWS TO THE STATEMENT OF NET ASSETS

Cash and Cash EquivalentsUnrestricted

System Fund 195,535,556$ 200,569,323$ Restricted

Debt Service Fund 141,437,311 89,784,462 Reserve Fund 16,620,664 10,101,164 Construction Fund 347,101,333 194,112,047

700,694,864$ 494,566,996$

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income 71,470,915$ 57,700,183$

Adjustments to reconcile operating income to net cashprovided by operating activities:

Non-cash revenues from City of San Antonio (1,939,460) (1,593,994) Provision for uncollectible accounts 3,991,147 1,641,471 Depreciation & Amortization Expense 54,682,106 51,166,339

Change in assets, deferred outflows, liabilities and deferred inflows:(Increase)/Decrease in accounts receivable (4,246,124) (1,682,421) (Increase)/Decrease in inventory (221,414) 64,466 (Increase)/Decrease in prepaid expenses (1,219,205) (2,387,512) (Decrease)/Increase in accounts payable (14,361,625) (10,642,165) (Decrease)/Increase in amount due for third party collections 1,325,930 3,108 (Decrease)/Increase in accrued vacation payable 709,612 1,072,721 (Decrease)/Increase in accrued payroll and benefits (1,826,979) (1,860,599) (Decrease)/Increase in claims payables (540,406) - (Decrease)/Increase in accrued stormwater services 1,481 (15,795) (Decrease)/Increase in sundry payables and accruals 1,102,699 1,545,607 (Decrease)/Increase in customers' deposits 38,852 98,566

Total Adjustments 37,496,614 37,409,792

Net cash provided by operating activities 108,967,529$ 95,109,975$

San Antonio Water SystemSTATEMENT OF CASH FLOWSFour months ended April 2020

5

San Antonio Water SystemCONSOLIDATING SCHEDULE OF SOURCES AND USES OF FUNDS

Month ended April 2020

SOURCES OF FUNDS Water Water BudgetSupply Delivery Wastewater Chilled Water Total Current Favorable

OPERATING REVENUES System System System System System Allotments (Unfavorable) VarianceWater Resources - Misc. $ (6,641) $ - $ - $ - $ (6,641) $ 263,434 $ (270,075) -102.52%Water Supply Fee 15,539,838 - - - 15,539,838 17,661,948 (2,122,110) -12.02%EAA/TCEQ Pass Through Fees 1,572,071 155,658 40,959 - 1,768,688 1,978,724 (210,036) -10.61%Recycled water system 463,470 - - - 463,470 485,667 (22,197) -4.57%Stormwater 419,923 - - - 419,923 433,666 (13,743) -3.17%Metered Water - Conservation 757,557 - - - 757,557 762,797 (5,240) -0.69%Metered Water - Water Delivery - 16,254,145 - - 16,254,145 17,763,239 (1,509,094) -8.50%Affordability Discount Program (155,163) (124,406) (285,702) - (565,271) (536,493) (28,778) -5.36%Wastewater System - - 21,353,731 - 21,353,731 22,516,713 (1,162,982) -5.16%Wastewater Surcharge - - 372,953 - 372,953 463,325 (90,372) -19.51%Chilled water - - - 772,899 772,899 867,946 (95,047) -10.95%Operating Transfer 469,167 (469,167) - - - - - 0.00%Less: Uncollectible Accounts (759,534) (500,135) (606,507) - (1,866,176) (418,407) (1,447,769) 346.02% Total operating revenues 18,300,688 15,316,095 20,875,434 772,899 55,265,116 62,242,559 (6,977,443) -11.21%

NON-OPERATING REVENUESInterest earned and miscellaneous 428,556 489,882 475,386 13,305 1,407,129 1,416,667 (9,538) -0.67%Interest earned on Project Fund 4,539 66,854 104,978 1,889 178,260 250,000 (71,740) -28.70% Total non-operating revenues 433,095 556,736 580,364 15,194 1,585,389 1,666,667 (81,278) -4.88%

CAPITAL CONTRIBUTIONSCapital Recovery and Service Extension Fees 1,773,709 1,167,181 1,315,364 - 4,256,254 8,135,506 (3,879,252) -47.68% Total capital contributions 1,773,709 1,167,181 1,315,364 - 4,256,254 8,135,506 (3,879,252) -47.68%

TOTAL SOURCES OF FUNDS $ 20,507,492 $ 17,040,012 $ 22,771,162 $ 788,093 $ 61,106,759 $ 72,044,732 $ (10,937,973) -15.18%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 3,091,703 $ 5,003,211 $ 5,637,443 $ 150,278 $ 13,882,635 $ 14,405,175 $ 522,540 3.63%Contractual services 9,609,661 3,028,851 3,565,272 451,535 16,655,319 20,527,074 3,871,755 18.86%Materials and supplies 302,456 462,829 992,677 21,945 1,779,907 2,084,325 304,418 14.61%Other charges (37,359) (92,478) (152,436) 4,390 (277,883) 1,018,078 1,295,961 127.29%Capitalized cost (473,115) (1,226,228) (865,037) (8,288) (2,572,668) (2,716,339) (143,671) 5.29% Total operation and maintenance 12,493,346 7,176,185 9,177,919 619,860 29,467,310 35,318,313 5,851,003 16.57%

OPERATING RESERVE REQUIREMENT - - - - - - - 0.00%

DEBT REQUIREMENTSRevenue Bonds: Interest costs 1,665,961 3,273,800 4,124,296 68,491 9,132,548 10,256,840 1,124,292 10.96% Retirement of bonds 1,426,965 2,879,704 2,707,206 105,831 7,119,706 8,446,759 1,327,053 15.71%Subordinate lien debt: Interest costs 136,837 21,491 50,563 32,018 240,909 267,108 26,199 9.81% Retirement of bonds 191,937 30,144 70,924 44,911 337,916 339,596 1,680 0.49% Net variable interest - swap 45,276 7,111 16,731 10,593 79,711 - (79,711) 0.00% Commercial paper notes 26,859 141,044 3,463 1,163 172,529 714,175 541,646 75.84%Other Debt Expense 52,916 65,594 84,114 7,819 210,443 207,389 (3,054) -1.47% Total debt requirements 3,546,751 6,418,888 7,057,297 270,826 17,293,762 20,231,867 2,938,105 14.52%

TRANSFER TO THE CITY'S GENERAL FUND 661,770 627,653 854,033 31,449 2,174,905 2,446,998 272,093 11.12%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 1,778,248 1,234,035 1,420,342 1,889 4,434,514 8,385,506 (3,950,992) -47.12%UNRESTRICTED 2,027,377 1,583,251 4,261,571 (135,931) 7,736,268 5,662,048 2,074,220 36.63% Total amount available for R&R Funds 3,805,625 2,817,286 5,681,913 (134,042) 12,170,782 14,047,554 (1,876,772) -13.36%

TOTAL USES OF FUNDS $ 20,507,492 $ 17,040,012 $ 22,771,162 $ 788,093 $ 61,106,759 $ 72,044,732 $ (10,937,973) -15.18%

*Excludes non-cash portion of GASB 68 and 75 expenses.

6

San Antonio Water SystemCONSOLIDATING SCHEDULE OF SOURCES AND USES OF FUNDS

Four months ended April 2020

SOURCES OF FUNDS Water WaterSupply Delivery Wastewater Chilled Water Total Current Favorable

OPERATING REVENUES System System System System System Allotments (Unfavorable) VarianceWater Resources - Misc. $ 483,496 $ - $ - $ - $ 483,496 $ 1,053,736 $ (570,240) -54.12%Water Supply Fee 61,627,926 - - - 61,627,926 63,766,924 (2,138,998) -3.35%EAA/TCEQ Pass Through Fees 6,477,859 620,967 163,402 - 7,262,228 7,686,739 (424,511) -5.52%Recycled water system 1,855,119 - - - 1,855,119 1,900,195 (45,076) -2.37%Stormwater 1,678,234 - - - 1,678,234 1,734,664 (56,430) -3.25%Metered Water - Conservation 3,062,550 - - - 3,062,550 2,905,642 156,908 5.40%Metered Water - Water Delivery - 67,278,968 - - 67,278,968 69,134,987 (1,856,019) -2.68%Affordability Discount Program (603,394) (483,791) (1,111,039) - (2,198,224) (2,125,482) (72,742) -3.42%Wastewater System - - 88,267,539 - 88,267,539 88,688,766 (421,227) -0.47%Wastewater Surcharge - - 1,936,550 - 1,936,550 1,800,217 136,333 7.57%Chilled water - - - 3,029,678 3,029,678 3,471,784 (442,106) -12.73%Operating Transfer 1,876,667 (1,876,667) - - - - - 0.00%Less: Uncollectible Accounts (1,624,570) (1,069,541) (1,297,036) - (3,991,147) (1,673,628) (2,317,519) 138.47% Total operating revenues 74,833,887 64,469,936 87,959,416 3,029,678 230,292,917 238,344,544 (8,051,627) -3.38%

NON-OPERATING REVENUESInterest earned and miscellaneous 1,920,418 2,098,473 1,953,678 56,513 6,029,082 5,666,668 362,414 6.40%Interest earned on Project Fund 5,919 211,279 493,181 4,027 714,406 1,000,000 (285,594) -28.56% Total non-operating revenues 1,926,337 2,309,752 2,446,859 60,540 6,743,488 6,666,668 76,820 1.15%

CAPITAL CONTRIBUTIONSCapital Recovery and Service Extension Fees 12,285,826 8,237,825 9,225,010 - 29,748,661 32,052,401 (2,303,740) -7.19%Contributions in aid of construction - 600,400 - - 600,400 - 600,400 0.00% Total capital contributions 12,285,826 8,838,225 9,225,010 - 30,349,061 32,052,401 (1,703,340) -5.31%

TOTAL SOURCES OF FUNDS $ 89,046,050 $ 75,617,913 $ 99,631,285 $ 3,090,218 $ 267,385,466 $ 277,063,613 $ (9,678,147) -3.49%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 11,886,648 $ 19,696,472 $ 22,122,003 $ 588,395 $ 54,293,518 $ 55,852,053 $ 1,558,535 2.79%Contractual services 29,550,999 10,525,706 11,634,512 1,764,640 53,475,857 64,466,158 10,990,301 17.05%Materials and supplies 1,060,737 2,357,242 4,109,296 100,165 7,627,440 8,313,150 685,710 8.25%Other charges 381,911 538,804 617,651 52,759 1,591,125 4,002,612 2,411,487 60.25%Capitalized cost (1,930,692) (4,531,916) (3,658,801) (32,274) (10,153,683) (10,640,051) (486,368) 4.57%

Total operation and maintenance 40,949,603 28,586,308 34,824,661 2,473,685 106,834,257 121,993,922 15,159,665 12.43%

OPERATING RESERVE REQUIREMENT 12,818,136 (118,892) 1,533,756 22,843 14,255,843 5,008,836 (9,247,007) -184.61%

DEBT REQUIREMENTSRevenue Bonds: Interest costs 6,842,987 12,976,430 15,681,650 274,038 35,775,105 41,027,361 5,252,256 12.80% Retirement of bonds 5,707,862 11,518,817 10,828,826 423,327 28,478,832 33,787,037 5,308,205 15.71%Subordinate lien debt: Interest cost 542,263 85,162 200,371 126,882 954,678 1,068,432 113,754 10.65% Retirement of bonds 767,754 120,574 283,695 179,643 1,351,666 1,358,384 6,718 0.49% Net variable interest - swap (12,432) (1,953) (4,592) (2,910) (21,887) - 21,887 100.00% Commercial paper notes 100,899 492,908 85,256 4,288 683,351 2,856,700 2,173,349 76.08%Other Debt Expense 211,665 262,375 336,456 31,274 841,770 829,556 (12,214) -1.47% Total debt requirements 14,160,998 25,454,313 27,411,662 1,036,542 68,063,515 80,927,470 12,863,955 15.90%

TRANSFER TO THE CITY'S GENERAL FUND 2,704,307 2,653,080 3,596,524 123,448 9,077,359 9,372,089 294,730 3.14%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 12,291,745 9,049,504 9,718,191 4,027 31,063,467 33,052,401 (1,988,934) -6.02%UNRESTRICTED 6,121,261 9,993,600 22,546,491 (570,327) 38,091,025 26,708,895 11,382,130 42.62% Total amount available for R&R Funds 18,413,006 19,043,104 32,264,682 (566,300) 69,154,492 59,761,296 9,393,196 15.72%

TOTAL USES OF FUNDS $ 89,046,050 $ 75,617,913 $ 99,631,285 $ 3,090,218 $ 267,385,466 $ 277,063,613 $ (9,678,147) -3.49%

Budget

*Excludes non-cash portion of GASB 68 and 75 expenses.

7

San Antonio Water SystemCONSOLIDATING SCHEDULE OF SOURCES AND USES OF FUNDS - WATER SUPPLY

Month ended April 2020

SOURCES OF FUNDS Recycle BudgetWater Water Stormwater Total Current Favorable

OPERATING REVENUES Resources System Conservation System System Allotments (Unfavorable) VarianceWater Resources - Misc. $ (6,641) $ - $ - $ - $ (6,641) $ 263,434 $ (270,075) -102.52%Water Supply Fee 15,539,838 - - - 15,539,838 17,661,948 (2,122,110) -12.02%EAA Fee 1,572,071 - - - 1,572,071 1,782,025 (209,954) -11.78%Recycled water system - 463,470 - - 463,470 485,667 (22,197) -4.57%Stormwater - - - 419,923 419,923 433,666 (13,743) -3.17%Metered Water - Conservation - - 757,557 - 757,557 762,797 (5,240) -0.69%Affordability Discount Program (155,163) - - - (155,163) (147,216) (7,947) -5.40%Operating Transfer 469,167 - - - 469,167 469,167 - 0.00%Less: Uncollectible Accounts (605,201) (13,809) (23,701) (116,823) (759,534) (114,576) (644,958) 562.91% Total operating revenues 16,814,071 449,661 733,856 303,100 18,300,688 21,596,912 (3,296,224) -15.26%

NON-OPERATING REVENUESInterest earned and miscellaneous 421,550 4,825 1,462 719 428,556 425,000 3,556 0.84%Interest earned on Project Fund & R&R Funds 4,539 - - - 4,539 75,000 (70,461) -93.95% Total non-operating revenues 426,089 4,825 1,462 719 433,095 500,000 (66,905) -13.38%

CAPITAL CONTRIBUTIONSCapital Recovery Fees 1,773,709 - - - 1,773,709 3,118,706 (1,344,997) -43.13% Total capital contributions 1,773,709 - - - 1,773,709 3,118,706 (1,344,997) -43.13%

TOTAL SOURCES OF FUNDS $ 19,013,869 $ 454,486 $ 735,318 $ 303,819 $ 20,507,492 $ 25,215,618 $ (4,708,126) -18.67%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 2,345,463 $ 92,129 $ 380,611 $ 273,500 $ 3,091,703 $ 3,228,840 $ 137,137 4.25%Contractual services 9,016,183 79,953 427,479 86,046 9,609,661 12,659,661 3,050,000 24.09%Materials and supplies 275,507 15,383 4,404 7,162 302,456 447,688 145,232 32.44%Other charges (17,678) 2,089 (17,599) (4,171) (37,359) 223,004 260,363 0.00%Capitalized cost (431,112) (16,258) (13,986) (11,759) (473,115) (505,267) (32,152) 6.36% Total operation and maintenance 11,188,363 173,296 780,909 350,778 12,493,346 16,053,926 3,560,580 22.18%

OPERATING RESERVE REQUIREMENT - - - - - - - 0.00%

DEBT REQUIREMENTSRevenue Bonds: Interest costs 1,455,569 210,392 - - 1,665,961 1,684,522 18,561 1.10% Retirement of bonds 1,021,669 405,296 - - 1,426,965 1,512,021 85,056 5.63%Subordinate lien debt: Interest costs 123,831 13,006 - - 136,837 147,228 10,391 7.06% Retirement of bonds 173,694 18,243 - - 191,937 197,777 5,840 2.95% Net variable interest - swap 40,973 4,303 - - 45,276 - (45,276) 100.00%Commercial Paper Notes 26,859 - - - 26,859 45,167 18,308 40.53%Other Debt Expense 50,782 2,134 - - 52,916 52,738 (178) -0.34% Total debt requirements 2,893,377 653,374 - - 3,546,751 3,639,453 92,702 2.55%

TRANSFER TO THE CITY'S GENERAL FUND 626,542 5,816 29,412 - 661,770 781,505 119,735 15.32%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 1,778,248 - - - 1,778,248 3,193,706 (1,415,458) -44.32%UNRESTRICTED 2,527,339 (378,000) (75,003) (46,959) 2,027,377 1,547,028 480,349 31.05% Total amount available for R&R Funds 4,305,587 (378,000) (75,003) (46,959) 3,805,625 4,740,734 (935,109) -19.72%

TOTAL USES OF FUNDS $ 19,013,869 $ 454,486 $ 735,318 $ 303,819 $ 20,507,492 $ 25,215,618 $ (4,708,126) -18.67%

*Excludes non-cash portion of GASB 68 and 75 expenses.

8

San Antonio Water SystemCONSOLIDATING SCHEDULE OF SOURCES AND USES OF FUNDS - WATER SUPPLY

Four months ended April 2020

SOURCES OF FUNDS RecycleWater Water Stormwater Total Current Favorable

OPERATING REVENUES Resources System Conservation System System Allotments (Unfavorable) VarianceWater Resources - Misc. $ 483,496 $ - $ - $ - $ 483,496 $ 1,053,736 $ (570,240) -54.12%Water Supply Fee 61,627,926 - - - 61,627,926 63,766,923 (2,138,997) -3.35%EAA Fee 6,477,859 - - - 6,477,859 6,899,943 (422,084) -6.12%Recycled water system - 1,855,119 - - 1,855,119 1,900,195 (45,076) -2.37%Stormwater - - - 1,678,234 1,678,234 1,734,664 (56,430) -3.25%Metered Water - Conservation - - 3,062,550 - 3,062,550 2,905,642 156,908 5.40%Affordability Discount Program (603,394) - - - (603,394) (583,242) (20,152) -3.46%Operating Transfer 1,876,667 - - - 1,876,667 1,876,667 - 0.00%Less: Uncollectible Accounts (1,294,243) (29,534) (50,688) (250,105) (1,624,570) (458,304) (1,166,266) -254.47% Total operating revenues 68,568,311 1,825,585 3,011,862 1,428,129 74,833,887 79,096,224 (4,262,337) -5.39%

NON-OPERATING REVENUESInterest earned and miscellaneous 1,883,145 24,039 8,871 4,363 1,920,418 1,700,000 220,418 12.97%Interest earned on Project Fund & R&R Funds 5,173 746 - - 5,919 300,000 (294,081) 100.00% Total non-operating revenues 1,888,318 24,785 8,871 4,363 1,926,337 2,000,000 (73,663) -3.68%

CAPITAL CONTRIBUTIONSCapital Recovery Fees 12,285,826 - - - 12,285,826 12,287,130 (1,304) -0.01% Total capital contributions 12,285,826 - - - 12,285,826 12,287,130 (1,304) -0.01%

TOTAL SOURCES OF FUNDS $ 82,742,455 $ 1,850,370 $ 3,020,733 $ 1,432,492 $ 89,046,050 $ 93,383,354 $ (4,337,304) -4.64%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 9,056,890 $ 361,248 $ 1,425,703 $ 1,042,807 $ 11,886,648 $ 12,515,075 $ 628,427 5.02%Contractual services 27,990,978 261,314 951,822 346,885 29,550,999 34,925,446 5,374,447 15.39%Materials and supplies 977,228 29,755 21,192 32,562 1,060,737 1,822,818 762,081 41.81%Other charges 286,017 24,832 40,634 30,428 381,911 879,788 497,877 100.00%Capitalized cost (1,764,929) (64,404) (56,518) (44,841) (1,930,692) (1,976,652) (45,960) 2.33% Total operation and maintenance 36,546,184 612,745 2,382,833 1,407,841 40,949,603 48,166,475 7,216,872 14.98%

OPERATING RESERVE REQUIREMENT 12,850,553 (3,353) 16,468 (45,532) 12,818,136 4,784,749 (8,033,387) -167.90%

DEBT REQUIREMENTSRevenue Bonds: Interest costs 6,016,602 826,385 - - 6,842,987 6,738,088 (104,899) -1.56% Retirement of bonds 4,086,675 1,621,187 - - 5,707,862 6,048,084 340,222 5.63%Subordinate lien debt: Interest costs 490,722 51,541 - - 542,263 588,912 46,649 7.92% Retirement of bonds 694,779 72,975 - - 767,754 791,108 23,354 2.95% Net variable interest - swap (11,250) (1,182) - - (12,432) - 12,432 100.00%Commercial paper notes 100,899 - - - 100,899 180,668 79,769 44.15%Other Debt Expense 203,128 8,537 - - 211,665 210,952 (713) -0.34% Total debt requirements 11,581,555 2,579,443 - - 14,160,998 14,557,812 396,814 2.73%

TRANSFER TO THE CITY'S GENERAL FUND 2,558,944 24,534 120,829 - 2,704,307 2,843,490 139,183 4.89%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 12,290,999 746 - - 12,291,745 12,587,130 (295,385) 100.00%UNRESTRICTED 6,914,220 (1,363,745) 500,603 70,183 6,121,261 10,443,698 (4,322,437) -41.39% Total amount available for R&R Funds 19,205,219 (1,362,999) 500,603 70,183 18,413,006 23,030,828 (4,617,822) -20.05%

TOTAL USES OF FUNDS $ 82,742,455 $ 1,850,370 $ 3,020,733 $ 1,432,492 $ 89,046,050 $ 93,383,354 $ (4,337,304) -4.64%

Budget

*Excludes non-cash portion of GASB 68 and 75 expenses.

9

San Antonio Water SystemOPERATION AND MAINTENANCE EXPENSE BY ACCOUNT

For the Four Months Ended April 30, 2020

Annual Current Month Year to DateBudget Variance

Classification Actual Budget Actual Budget (Over)/Under %

SALARIES AND FRINGE BENEFITS

511100 - Salaries 110,689,638$ 9,081,249$ 9,267,218$ 35,173,250$ 36,346,290$ 1,173,040 3.2%

511140 - Overtime Pay 5,757,997 254,175 478,817 2,045,759 1,962,306 (83,453) -4.3%

511150 - On-Call Pay 678,374 64,558 57,010 256,623 224,410 (32,213) -14.4%

511160 - Employee Insurance 17,506,549 1,326,116 1,458,879 6,028,294 5,835,517 (192,778) -3.3%

511162 - Retirement 23,258,428 1,860,897 1,957,451 7,402,011 7,722,731 320,720 4.2%

511164 - Unused Sick Leave Buyback 70,000 - - - - - 0.0%

511166 - Personal Leave Buyback 950,000 - - - - - 0.0%

511168 - Accrued Vacation leave 1,200,000 670,640 500,000 887,581 1,200,000 312,419 26.0%

511170 - Incentive Pay 60,800 - 60,800 - 60,800 60,800 100.0%

511175 - Other Post Employment Benef 7,500,000 625,000 625,000 2,500,000 2,500,000 - 0.0%

Salaries and Fringe Benefits Total 167,671,786 13,882,635 14,405,175 54,293,519 55,852,053 1,558,534 2.8%

CONTRACTUAL SERVICES

511210 - Operating Expense 1,519,288 73,238 148,080 474,520 685,578 211,059 30.8%

511211 - Rental of Facilities 274,549 24,225 22,754 59,932 92,516 32,584 35.2%

511212 - Alarm and Security 1,938,649 157,577 161,554 460,094 646,217 186,123 28.8%

511214 - Uniforms and Shoe Allowance 442,267 24,305 34,528 150,639 168,886 18,248 10.8%

511215 - Box Lunch Program - 122,531 - 151,211 - (151,211) 0.0%

511216 - Catering Svcs and Luncheons 123,207 293 10,727 26,745 43,867 17,122 39.0%

511218 - Project Agua Assistance 400,000 30,522 33,333 103,415 133,336 29,921 22.4%

511219 - Conservation Programs 3,625,153 342,670 454,014 634,576 940,711 306,135 32.5%

511220 - Maintenance Expense 20,290,918 2,457,296 1,776,583 6,352,349 6,414,533 62,185 1.0%

511221 - Street Cut Permit Admin Fee 841,431 14,620 70,119 154,340 280,477 126,137 45.0%

511222 - St Pave/Repair Fee 1,800,545 103,197 150,046 201,438 600,182 398,744 66.4%

511224 - Auto and Equip. Maintenance 1,563,218 169,182 130,268 628,060 521,073 (106,987) -20.5%

511225 - Damage Repair 150,000 13,057 12,500 59,038 50,000 (9,038) -18.1%

511230 - Equipment Rental Charges 308,521 151,038 28,810 676,552 105,940 (570,612) -538.6%

511240 - Travel 223,852 (2,066) 17,461 23,764 78,641 54,877 69.8%

511245 - Training 667,750 22,002 50,910 102,304 149,508 47,204 31.6%

511247 - Conferences 108,501 (519) 20,407 11,945 50,958 39,013 76.6%

511250 - Memberships and Subscription 499,888 14,019 23,060 236,158 275,306 39,148 14.2%

511260 - Utilities 39,671,678 2,185,616 3,273,954 8,565,306 10,052,121 1,486,815 14.8%

511261 - Water Options 110,944,827 5,869,400 7,530,901 16,116,619 18,066,068 1,949,449 10.8%

511265 - Ground Water District Pay 23,297,592 1,922,818 1,941,465 7,235,053 7,765,862 530,809 6.8%

511270 - Mail and Parcel Post 2,288,484 159,523 190,874 685,612 763,044 77,431 10.2%

511280 - Telemetering Charges 3,360 172 280 690 1,120 430 38.4%

511310 - Educational Assistance 76,553 2,760 3,155 8,656 22,887 14,232 62.2%

511312 - Contractual Prof Svcs 37,121,263 1,780,550 3,194,704 6,057,800 11,655,653 5,597,852 48.0%

511313 - Inspect and Assessment Fees 2,469,186 190,654 204,491 765,954 829,151 63,197 7.6%

511315 - Temporary Employees 739,992 74,398 61,250 416,407 229,999 (186,409) -81.1%

511316 - Medical Services 135,500 9,258 6,425 31,868 45,694 13,826 30.3%

511320 - Legal Services 2,273,907 100,517 227,361 350,944 755,000 404,056 53.5%

511370 - Communications 1,671,015 59,693 138,949 318,611 559,382 240,771 43.0%

511381 - Software and Hardware Mainte 7,385,803 582,772 608,112 1,968,352 2,482,448 514,096 20.7%

Contractual Services Total 262,856,898 16,655,320 20,527,074 53,475,859 64,466,157 10,990,299 17.1%

Excludes the non‐cash portion of benefit expense.

10

San Antonio Water SystemOPERATION AND MAINTENANCE EXPENSE BY ACCOUNT

For the Four Months Ended April 30, 2020

Annual Current Month Year to DateBudget Variance

Classification Actual Budget Actual Budget (Over)/Under %

MATERIALS AND SUPPLIES

511410 - Small Tools 687,639 28,811 56,331 248,622 229,907 (18,715) -8.1%

511417 - Copy and Printing Expense 22,708 4,947 1,539 5,213 7,692 2,479 32.2%

511420 - Operating Materials 2,420,827 174,309 190,182 751,928 808,155 56,227 7.0%

511421 - Heating Fuel 15,500 - 1,250 5,663 5,250 (413) -7.9%

511422 - Chemicals 8,931,256 654,708 734,566 2,387,885 2,991,727 603,841 20.2%

511425 - Education of School Children 30,000 - 2,500 6,994 10,000 3,006 30.1%

511426 - Public Awareness-WQEE 1,000 - 83 - 332 332 100.0%

511427 - Enforcement 5,000 232 - 232 - (232) 0.0%

511430 - Maintenance Materials 8,889,073 631,161 743,472 2,982,517 2,965,225 (17,292) -0.6%

511435 - Safety Materials & Supplies-Covid 30,432 - 30,432 - (30,432) 0.0%

511440 - Safety Materials and Supplies 868,748 127,471 72,365 477,737 290,911 (186,826) -64.2%

511441 - Inventory Variances - 9,759 - (23,043) - 23,043 0.0%

511450 - Tires and Tubes 550,000 35,037 45,833 140,933 183,333 42,401 23.1%

511451 - Motor Fuel and Lubricants 2,552,087 83,039 236,205 612,327 820,619 208,291 25.4%

Materials and Supplies Total 24,973,838 1,779,905 2,084,325 7,627,439 8,313,150 685,711 8.3%

OTHER CHARGES

511510 - Judgements and Claims 725,000 (327,434) 60,415 (490,372) 241,660 732,032 302.9%

511511 - AL/GL Claims - Cont. Liab. 330,000 (675,310) 27,500 (675,643) 110,000 785,643 714.2%

511520 - Bank Charges 125,260 9,382 12,526 13,232 50,104 36,872 73.6%

511525 - Cash Short/(Over) - 18,871 - 18,699 - (18,699) 0.0%

511530 - Employee Relations 208,590 3,848 21,788 48,877 57,452 8,575 14.9%

511540 - Retiree Insurance 8,240,694 426,546 686,724 2,049,318 2,746,898 697,580 25.4%

511570 - Casualty Insurance 1,139,513 102,253 94,960 377,516 379,840 2,324 0.6%

511580 - Unemployment Compensation 80,000 - 20,000 4,924 40,000 35,076 87.7%

511590 - Workers Comp Medical 1,130,000 163,962 94,165 244,575 376,660 132,085 35.1%

Other Charges Total 11,979,057 (277,883) 1,018,078 1,591,126 4,002,614 2,411,488 60.3%

O&M Before Capitalized Cost 467,481,579 32,486,885 38,034,652 116,987,942 132,633,974 15,646,033 11.8%

Capitalized Cost (31,499,998) (2,572,669) (2,716,339) (10,153,684) (10,640,051) (486,368) 4.6%

Total O&M Expense 435,981,581$ 29,467,308$ 35,318,313$ 106,834,258$ 121,993,923$ 15,159,665$ 12.4%

Excludes the non‐cash portion of benefit expense.

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San Antonio Water SystemInvestment Portfolio

Average Yield Average DaysInvestment Type Market Value Amortized Value To Maturity To Maturity

Money Market Funds 72,111,323 72,111,323 0.172 1

External Investment Pools: Texas Class Investment Pool 406,124,339 406,124,339 1.020 1 Texpool Prime Local Gov't Pool 130,881,507 130,881,507 0.950 1 Total External Investment Pools 537,005,846 537,005,846 1.003 1

Municipal Bonds 90,281,886 89,469,028 1.988 764

Government Agency Securities: Federal Agricultural Mtg Corp 18,214,880 17,988,849 2.284 295 Federal Farm Credit Bank 84,324,155 82,565,436 2.538 391 Federal Home Loan Bank 105,560,479 104,278,586 2.509 282 Federal Home Loan Mtg. Corp. 89,352,682 88,943,652 1.904 850 Federal National Mtg. Assn. 44,072,173 43,566,079 2.125 692 Total Government Agencies 341,524,369 337,342,602 2.295 512

U. S. Treasury Securities 136,482,348 134,371,825 2.256 351

Total Investments 1,177,405,772$ 1,170,300,624$ 1.544 247

April 30, 2020

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San Antonio Water SystemKEY FINANCIAL RATIOS

For the Period Ended April 30, 2020

April 30, 2020 April 30, 2019

Total Long-term Debt (a) 3,230,692,466$ 3,163,014,531$

Total Water & Sewer Customer Connections (b) 983,438 964,188

Long-term Debt Per Connection (a)/(b) 3,285$ 3,280$

Total Net Position 3,527,811,695$ 3,188,653,454$

Total Liabities & Net Position 8,148,035,214$ 6,744,457,041$

Net Position Ratio 43.3% 47.3%

YTD Operating Revenues (c) 230,292,916$ 213,085,288$ YTD Operating Expenses before Depreciation (d) 104,139,895$ 104,218,766$

Cash Operating Margin ((c)-(d))/(c) 54.8% 51.1%

Rolling 12 MonthsOperating Revenues 750,386,152$ 698,644,273$ Non-Operating Revenues 26,009,978 26,346,453Less: Revenues from CPS contract (3,531,928) (3,443,499) Interest Earned on Project Fund Investments (3,248,920) (3,620,815) Build America Bond Subsidy (3,316,836) (3,547,137)

Gross Revenues 766,298,446$ 714,379,275$

O&M Expense before Depreciation 342,549,930$ 333,220,660$

Pledged Revenue* 423,748,516$ 381,158,615$

Debt Service - Net of Build America Bond Subsidy:Current Year Senior Lien 41,550,016$ 51,572,201$ Current Year Total Bonded Debt 190,955,524$ 196,112,671$

Senior Lien Debt Coverage Ratio 10.20 x 7.39 x

Total Bonded Debt Coverage Ratio 2.22 x 1.94 x

Unrestricted Cash & Investments 507,418,510$ 511,647,846$

Days Cash on Hand - Rolling 12 Months of O&M 541 560

Unrestricted Working Capital 516,731,301$ 531,095,674$

Days Working Capital on Hand - Rolling 12 Months of O&M 551 582

Total Long-term Debt 3,230,692,466$ 3,163,014,531$ Bonds Payable Within One Year 86,445,000 87,060,001$

Total Debt Outstanding (e) 3,317,137,466$ 3,250,074,532$

Rolling 12 Months

Operating Revenues (g) 750,386,152$ 698,644,273$ Non-Operating Revenues 26,009,978 26,346,453Gain (Loss) on Sale of Fixed Assets 533,683 657,561Capital Recovery Fees 92,749,761 82,137,348Less: O&M Expense before Depreciation (342,549,930) (333,220,660)

Funds Available for Debt Service (FADS) (f) 527,129,644$ 474,564,975$

Total Debt to FADS Ratio (e)/(f) 6.29 x 6.85 x

Total Debt to Operating Revenue Ratio (e)/(g) 4.42 x 4.65 x

*Does not include certain non-cash O&M expenses nor the effect of investment mark to market adjustments on non-operating revenue.

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(Below)April Above

2020 2019 Prior Year

Current Month Actual 2.9 3.5 (17) %

Normal 2.1 2.1 0 %Percent Above(Below) Normal 38 % 65 %

Year to DateActual 7.4 6.0 22 %Normal 8.0 8.0 0 %Percent Above(Below) Normal (8) % (24) %

Number of days with rain 8 7

SAWS Total Water Pumpage - Month 5,870 6,676 (12) %

Water Pumpage for injection to Twin Oaks ASR 361 599 (40) %Water Pumpage for Consumption 5,510 6,078 (9) %

(includes water produced from ASR)

SAWS Billed Water Usage (Domestic and Irrigation)* 4,554 4,862 (6) %

SAWS Total Wastewater - Month 3,870 4,108 (6) %

SAWSNumber of connections (billed accounts) - WATER 518,958 508,858 2 %Number of connections (billed accounts) - WASTEWATER 464,480 455,330 2 %

Water - Miles of Main 7,274 7,192 1 % Wastewater - Miles of Main 5,635 5,572 1 % Manholes 111,155 109,404 2 % Fire Hydrants 42,684 41,900 2 %

High 674.0 681.2 (7.2) Feet Low 666.5 678.5 (12.0) Feet End of Month 666.5 680.8 (14.3) Feet

* Represents customers' metered usage. Billed water usage lags water pumpedeach month by an average of 2 -3 weeks.

Infrastructure In Service, Cumulative

Edwards Reservoir Level

SAN ANTONIO WATER SYSTEMSTATISTICAL DATA

Rainfall-Inches

SAWS Pumping Data (Million Gallons)

SAWS Wastewater Data (Million Gallons)

Customers

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