San Antonio Water System

CONDENSED MONTHLY FINANCIAL REPORT

July 2020

San Antonio, Texas

CONDENSED MONTHLY FINANCIAL REPORT SAN ANTONIO WATER SYSTEM

July 31, 2020

Attached is the monthly financial report of the San Antonio Water System (SAWS) for the month ended July 31, 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 $37.8 million during the month. Operating revenues for the month of $76.2 million were $0.2 million unfavorable to budget but

$15.5 million more than a year ago. During the month of July, a provision for uncollectible accounts of 2.30% of revenues was recorded to take into account the increases in customer account delinquencies related to the COVID-19 pandemic.

Operating expenses before depreciation for the month of $31.1 million were $3.0 million favorable to budget and $0.8 million less than the prior year.

Net debt interest expense was $1.5 million favorable to budget for the month and $0.2 million less than last year.

SAWS’ net income before capital contributions for the month of $15.2 million was $4.2 million favorable to budget and $8.0 million more than 2019.

Capital contributions for the month were $22.6 million compared to the budget of $15.4 million and $11.4 million in 2019.

OVERALL FINANCIAL CONDITION

SAWS’ total assets and deferred outflows of resources decreased $9.0 million primarily due to decreases in cash and investments that more than offset increases in capital assets and accounts receivable. Total liabilities and deferred inflows of resources decreased $46.8 million primarily due to reductions in commercial paper and accounts payable more than offsetting an increase in accrued interest. Working capital totaled $544.2 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 45.3% at July 31, 2020, 44.8% at June 30, 2020 and 49.6% at July 31, 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. In addition,

July 31, 2020($ in thousands)

Assets 7,843,987$ Deferred Outflows of Resources 138,697 Liabilities (4,355,267) Deferred Inflows of Resources (12,794) Total Net Position 3,614,623$

Net Investment in Capital Assets 2,904,217$ Restricted Net Position 292,868 Unrestricted Net Position 417,538 Total Net Position 3,614,623$

SAWS’ bond ordinance requires SAWS to maintain a debt coverage ratio of at least 1.0x the current year annual debt service on outstanding junior 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 July 2019 reflects a continuing 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 July 31, 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 July 2020 with comparisons to both the budget and the prior year.

Total operating revenues were $0.2 million unfavorable to budget but $15.5 million more than July 2019. Water delivery and supply revenues of $52.5 million were $0.4 million favorable to budget and $15.9 million more than July 2019. Since the majority of billed usage in a given month reflects customers’ actual usage in the previous month, lower than normal rainfall in June resulted in July’s billed usage being 2.0% more than budget and 18.5% more than last year. The provision for uncollectible accounts

Debt Coverage Ratios

07/31/20 06/30/20 07/31/19

Current Year Debt Service - Senior Lien Debt 10.41 10.22 7.67

Current Year Debt Service - Total Debt 2.26 2.22 1.90

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

July-20 Variance July-19 Variance

Actual Budget* To Budget Actual To Prior Year

31,069$ 30,624$ 445$ 17,843$ 13,226$

21,471 21,471 - 18,826 2,645

22,789 23,461 (672) 22,999 (210)

862 868 (6) 992 (130)

Total operating revenues 76,191 76,424 (233) 60,660 15,531

31,074 34,087 3,013 31,877 803

16,203 15,805 (398) 12,963 (3,240)

Total operating expenses 47,277 49,892 2,615 44,840 (2,437)

28,914 26,532 2,382 15,820 13,094

11 - 11 11 -

774 1,667 (893) 1,135 (361)

7,374 9,756 2,382 7,914 540

Interest Expense - Contract Payable 3,949 3,940 (9) - (3,949)

2,969 2,994 25 1,609 (1,360)

208 549 341 214 6

15,199 10,960 4,239 7,229 7,970

Contributions in Aid of Construction - - - 425 (425) 12,212 9,115 3,097 6,006 6,206

10,385 6,258 4,127 4,926 5,459

Total Contributions 22,597 15,373 7,224 11,357 11,240

37,796$ 26,333$ 11,463$ 18,586$ 19,210$

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

Investment Income

Interest Expense - Debt

Payments to the City of San Antonio

Depreciation and Amortization Expense

Operating Income

Miscellaneous Revenues

Wastewater System

Chilled Water System

Operating Expenses Before Depreciation

Water Delivery System

Operating Revenues

Water Supply System

was adjusted from 1.60% of revenues recorded during June to 2.30% for the month of July based on an increase in the level of delinquencies related to 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, combined with billed usage, which increased 18.5% over last year.

Wastewater revenue for the month of $22.2 million was $0.7 million unfavorable to budget and $0.2 million less than July 2019. The unfavorable variance to budget as well as to last year was primarily due to the adjustment in the provision for uncollectible accounts as a result of the COVID-19 pandemic. 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 July 2019.

For rate-making purposes and Sources & Uses reporting, the Vista Ridge Capital and Raw Groundwater unit price 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 portion of this amount as a financed purchase and the water lease portion of this amount as an operating expense. The budget amounts reflected on the financial statements have been adjusted to be consistent with SAWS accounting treatment.

Operating expenses before depreciation of $31.1 million were $3.0 million favorable to budget for the month and $0.8 million less than a year ago. The favorable variance to budget is primarily due to favorable variances in water options, contractual professional services and utilities. The decrease from last year is primarily due to a decrease in pension expense, which more than offset the increased spending on water options associated with taking the Vista Ridge water.

Investment income for the month was $0.9 million unfavorable to budget and $0.4 million less than July 2019. The yield on SAWS’ investment portfolio was 1.13% for the month compared to the budgeted yield of 2.00% and 2.46% earned on the portfolio a year ago. The unfavorable variance to budget is primarily due to the unfavorable yield combined with an unfavorable $0.3 million mark to market adjustment recorded in July. The decrease in investment income from last year is primarily due to the decrease in yield.

Interest expense related to debt was $2.4 million favorable to budget and $0.5 million less than July 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.

In July 2020, capital contributions included $12.2 million in capital recovery fees and $10.4 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 2.2% over the last 12 months (August 2019 - July 2020) and 1.8% for the preceding 12-month period (August 2018 - July 2019).

CASH FLOWS

Cash and cash equivalents decreased $14.5 million during July 2020. Cash inflows during the month included $36.1 million from operating activities, $17.5 million from investing activities and $12.2 million in proceeds from developers. Cash outflows for the month consisted primarily of $43.5 million spent on the retirement of commercial paper, $29.9 million spent on the acquisition and construction of property, plant and equipment and $5.4 million spent on the Vista Ridge contract 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 $428.7 million in additional capital contracts. Additionally, outstanding commitments on awarded contracts total $483.0 million at July 31, 2020.

($ in millions) Original Revised Percent

Plan Year Plan Plan Commitments Committed

CY2020 $ 608.9 $ 618.9 $ 280.8 45.4%CY2019 377.3 360.2 287.4 79.8%

CY2018 391.4 427.6 418.6 97.9%

$ 1,377.6 $ 1,406.7 $ 986.8 70.1%

Douglas P. Evanson Senior Vice President/Chief Financial Officer

CONDENSED MONTHLY FINANCIAL REPORT SAN ANTONIO July 31, 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

July 31, 2020

CURRENT ASSETS 2020 2019

Cash and cash equivalents $ 352,798,868 $ 119,523,652 Investments 168,682,524 320,619,273 Accrued interest receivable 2,565,768 3,168,264 Accounts receivable - net of allowance for uncollectable accounts of $15,046,960 and $5,465,412 respectively 83,899,385 72,483,104 Inventory - materials and supplies 6,023,841 5,694,253 Prepaid expenses 7,466,601 4,886,456 Total current unrestricted assets 621,436,987 526,375,002

RESTRICTED ASSETS

Debt Service Fund Cash and Cash Equivalents 50,192,345 49,562,860 Investments 5,188,503 3,850,889 Construction Funds Investments 27,236,945 17,247,092 Operating Reserve - System Fund 72,663,600 58,407,758 Total current restricted assets 155,281,393 129,068,599 Total current assets 776,718,380 655,443,601

NONCURRENT ASSETS

Restricted Noncurrent Assets Reserve fund: Cash and cash equivalents 16,644,366 753,762 Investments 24,731,856 58,934,277 Construction funds: Cash and cash equivalents 157,383,012 144,495,741 Investments 152,613,687 158,383,462

CAPITAL ASSETS Utility plant in service 8,091,890,974 6,703,964,341 Less allowance for depreciation 2,288,160,686 2,155,229,513

5,803,730,288 4,548,734,828 Land, water rights and other intangible assets 412,697,884 363,901,226 Construction in Progress 499,467,754 510,442,421 Total capital assets 6,715,895,926 5,423,078,475

TOTAL ASSETS 7,843,987,227 6,441,089,318

DEFERRED OUTFLOWS OF RESOURCES Loss on bond refunding 28,176,211 35,410,453 Deferred outflows - Asset Retirement Obligations 32,728,370 32,510,735 Deferred outflows - pension & OPEB plans 60,445,873 56,352,016 Derivative Instrument 17,346,294 12,693,917 TOTAL DEFERRED OUTFLOWS OF RESOURCES 138,696,748 136,967,121

TOTAL ASSETS & DEFERRED OUTFLOWS OF RESOURCES $ 7,982,683,975 $ 6,578,056,439

ASSETS AND DEFERRED OUTFLOWS OF RESOURCES

1

San Antonio Water System

STATEMENT OF NET POSITION - continuedJuly 31, 2020

LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION

2020 2019CURRENT LIABILITIES Accounts payable $ 32,466,500 $ 25,252,136 Customers' deposits 16,147,779 15,967,877 Third party billing collections payable 1,429,221 1,335,401 Contract and leases payable within one year 15,321,609 - Accrued vacation pay 7,621,269 6,708,937 Accrued payroll and benefits 1,787,777 5,807,393 Accrued claims payable 4,696,291 5,180,148 Accrued stormwater services 4,000,187 3,893,393 Health Insurance Payable 2,495,020 2,619,540 Sundry payables and deferred income 2,473,853 2,754,293 Total current unrestricted liabilities 88,439,506 69,519,118

LIABILITIES PAYABLE FROM RESTRICTED FUNDSDebt Service Fund Accrued interest payable 24,603,814 24,618,840 Construction funds: Contract retainage payable 24,546,928 16,676,260 Sundry payables 2,690,017 570,832 Revenue bonds payable within one year 92,250,000 86,115,000 Total current restricted liabilities 144,090,759 127,980,932 Total current liabilities 232,530,265 197,500,050

LONG-TERM LIABILITIES Contract and leases payable after one year 909,659,534 - 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 80,310,923 Derivative Instrument 19,992,713 15,677,395 Commercial paper notes 218,260,000 251,815,000 Revenue bonds payable after one year 2,537,719,999 2,456,569,998 Unamortized premium 236,126,194 179,110,978 Less unamortized discount (750,280) (791,187) Total long-term liabilities 4,122,736,255 3,108,831,275 TOTAL LIABILITIES 4,355,266,520 3,306,331,325

DEFERRED INFLOWS OF RESOURCES Deferred Inflows - pension & OPEB plans 12,794,059 7,612,587 TOTAL DEFERRED INFLOWS 12,794,059 7,612,587

TOTAL LIABILITIES & DEFERRED INFLOWS OF RESOURCES 4,368,060,579 3,313,943,912

NET POSITIONRestricted: Net investment in capital assets 2,904,217,247 2,666,478,417 Restricted for construction 170,682,044 162,208,134 Restricted for debt service 30,777,034 28,794,909 Restricted for debt service reserve 18,745,427 27,045,402 Restricted for operating reserve 72,663,600 58,407,758 Total Restricted Net Position 3,197,085,352 2,942,934,620 Unrestricted Net Position 417,538,044 321,177,907

TOTAL NET POSITION $ 3,614,623,396 $ 3,264,112,527

2

San Antonio Water SystemSTATEMENT OF REVENUES, EXPENSES

AND CHANGES IN NET POSITIONSeven months ended July 2020

Variance 2020 YTD 2020 YTD 2019 YTD

Actual Budget* Actual To Budget To Prior YearOperating revenues:

Water Resources - Misc. $ 592,906 $ 1,844,038 $ 1,192,207 $ (1,251,132) $ (599,301)

Water Supply Fee 132,366,162 133,694,698 82,806,859 (1,328,536) 49,559,303 EAA/TCEQ Fee 13,921,225 14,561,102 13,501,690 (639,877) 419,535 Recycle Water 3,583,705 3,532,608 3,257,503 51,097 326,202 Stormwater 2,937,987 3,035,662 3,045,803 (97,675) (107,816) Metered Water 124,010,798 125,849,630 118,853,753 (1,838,832) 5,157,045 Conservation Metered Water 6,504,631 5,727,784 5,844,384 776,847 660,247 Wastewater service charges 156,569,108 159,614,801 160,534,064 (3,045,693) (3,964,956) Chilled water 5,466,446 6,075,622 5,709,295 (609,176) (242,849) Less: Uncollectible accounts (8,311,281) (2,928,849) (3,005,384) (5,382,432) (5,305,897) Total operating revenues 437,641,687 451,007,096 391,740,174 (13,365,409) 45,901,513

Operating expenses: Salaries and fringe benefits 96,646,399 97,146,967 96,582,851 500,568 (63,548) Contractual services 96,256,101 121,502,553 94,777,623 25,246,452 (1,478,478) Materials & supplies 14,001,634 14,622,325 14,997,613 620,691 995,979 Other charges 3,694,144 6,986,846 5,091,377 3,292,702 1,397,233 Capitalized cost (17,453,727) (18,705,698) (18,194,501) (1,251,971) (740,774) Total operating expenses before depreciation 193,144,551 221,552,993 193,254,963 28,408,442 110,412 Depreciation and Amortization expense 101,585,835 101,879,333 89,524,628 293,498 (12,061,207) Total operating expenses 294,730,386 323,432,326 282,779,591 28,701,940 (11,950,795) Operating income (loss) 142,911,301 127,574,770 108,960,583 15,336,531 33,950,718

Non-operating revenues: Miscellaneous revenue 1,041,206 1,017,901 1,842,405 23,305 (801,199) Interest earned 10,210,304 11,666,669 16,028,190 (1,456,365) (5,817,886) Gain/(Loss) on Investments - Mark to Market 3,625,681 - 3,567,957 3,625,681 57,724 Total non-operating revenues 14,877,191 12,684,570 21,438,552 2,192,621 (6,561,361)

Non-operating expenses:

Debt issuance costs 2,331,757 2,321,005 1,094,861 (10,752) (1,236,896)

Other financing charges 1,473,105 1,451,723 1,430,493 (21,382) (42,612) Interest expense: Revenue bonds and commercial paper 65,213,628 78,651,049 68,636,830 13,437,421 3,423,202 Interest on contracts payable 13,755,537 13,744,765 - (10,772) (13,755,537) Amortized discount/premiums/Loss on refunding (12,621,946) (10,376,751) (10,406,263) 2,245,195 2,215,683 Loss (gain) on defeased debt (247,056) - 663,610 247,056 910,666 Loss (gain) on sale of fixed assets (235,864) - (591,348) 235,864 (355,484) Transfers to GKDA 48,099 71,400 48,733 23,301 634 Transfers to City of San Antonio 17,173,100 17,712,950 10,463,612 539,850 (6,709,488) Total non-operating expenses 86,890,360 103,576,141 71,340,528 16,685,781 (15,549,832)

Net income (loss) before capital contributions 70,898,132 36,683,199 59,058,607 34,214,933 11,839,525

Capital contributions:

Contributions in aid of construction 600,400 - 5,516,768 600,400 (4,916,368) Capital recovery fees 61,360,994 58,907,056 54,645,872 2,453,938 6,715,122 Plant contributions 51,248,267 43,808,335 39,196,112 7,439,932 12,052,155 Total capital contributions 113,209,661 102,715,391 99,358,752 10,494,270 13,850,909

CHANGE IN NET POSITION 184,107,793 139,398,590 158,417,359 44,709,203 25,690,434

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

NET POSITION, ending balances $ 3,614,623,396 $ 3,569,914,193 $ 3,264,112,527

*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 424,891,980$ 386,614,830$ Cash received from stormwater and third party billing 37,440,110 36,140,688 Cash paid to vendors for operations (118,298,983) (124,251,426) Cash paid to employees for services (81,314,839) (74,262,085) Cash paid to stormwater and third party entities (35,999,976) (36,075,257)

Net cash provided by operating activities 226,718,292 188,166,750

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIESPayments to the City of San Antonio (13,611,042) (7,321,538) Payments to other entities (75,947) (43,426)

Net cash used for noncapital financing activities (13,686,989) (7,364,964)

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIESProceeds from sale of capital assets 1,624,477 708,603 Proceeds from developers for plant construction 61,360,994 54,645,872 Proceeds from contributions in aid of construction 600,400 5,993,022 Payments for the acquistion and construction of plant and equipment (221,995,781) (234,242,482) Payment for principal on contract and leases payable (4,344,495) - Payment of interest on contract and leases payable (13,755,537) - Proceeds from commercial paper 170,060,000 40,000,000 Payment for retirement of commercial paper (140,615,000) (3,880,000) Proceeds from revenue bonds 148,835,376 167,905,069 Payment for retirement/refunding of revenue bonds (92,042,254) (87,060,002) Proceeds from/payment for cash defeasance of bonds 247,056 (178,933,356) Payment of interest on commercial paper (3,059,868) (3,009,531)

Payment of interest on revenue bonds (53,306,534) (56,459,652) Payment for bond issue costs (2,331,757) (1,094,862) Payment for finance charges (1,078,393) (1,438,836)

Net cash used for capital and related financing activities (149,801,316) (296,866,155)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of investments (136,896,018) (86,866,761) Maturity of investments 346,096,394 368,758,267 Interest income 12,029,726 18,519,282

Net cash provided (used) by investing activities 221,230,102 300,410,788

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS 284,460,089 184,346,419

CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR 292,558,502 129,989,596 CASH AND CASH EQUIVALENTS, AT END OF PERIOD 577,018,591$ 314,336,015$

San Antonio Water SystemSTATEMENT OF CASH FLOWSSeven months ended July 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 352,798,868$ 119,523,652$ Restricted

Debt Service Fund 50,192,345 49,562,860 Reserve Fund 16,644,366 753,762 Construction Fund 157,383,012 144,495,741

577,018,591$ 314,336,015$

RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Operating Income 142,911,301$ 108,960,583$

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

Non-cash revenues from City of San Antonio (3,534,210) (3,147,381) Provision for uncollectable accounts 8,311,281 3,005,384 Depreciation & Amortization Expense 101,585,835 89,524,628

Change in assets, deferred outflows, liabilities and deferred inflows:(Increase)/Decrease in accounts receivable (18,061,115) (6,233,424) (Increase)/Decrease in inventory (290,416) 128,491 (Increase)/Decrease in prepaid expenses (1,336,797) (213,242) (Decrease)/Increase in accounts payable (2,263,884) (9,681,527) (Decrease)/Increase in amount due for third party collections 1,429,221 50,426 (Decrease)/Increase in accrued vacation payable 1,731,761 1,216,964 (Decrease)/Increase in accrued payroll and benefits (3,853,928) 841,737 (Decrease)/Increase in claims payables (483,858) 239,804 (Decrease)/Increase in accrued stormwater services 10,914 15,006 Decrease/(Increase) in deferred outflows - pension & OPEB plans - (22,941,686) (Decrease)/Increase in deferred inflows - pension & OPEB plans - (16,235,066) (Decrease)/Increase in unfunded post-retirement obligations - 41,391,284 (Decrease)/Increase in sundry payables and accruals 421,990 847,438 (Decrease)/Increase in customers' deposits 140,197 397,331

Total Adjustments 83,806,991 79,206,167

Net cash provided by operating activities 226,718,292$ 188,166,750$

San Antonio Water SystemSTATEMENT OF CASH FLOWSSeven months ended July 2020

5

San Antonio Water SystemCONSOLIDATING SCHEDULE OF SOURCES AND USES OF FUNDS

Month ended July 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. $ 25,597 $ - $ - $ - $ 25,597 $ 263,434 $ (237,837) -90.3%Water Supply Fee 26,704,538 - - - 26,704,538 25,783,339 921,199 3.6%EAA/TCEQ Pass Through Fees 2,243,872 157,755 41,514 - 2,443,141 2,482,538 (39,397) -1.6%Recycled water system 607,029 - - - 607,029 582,650 24,379 4.2%Stormwater 419,921 - - - 419,921 433,666 (13,745) -3.2%Metered Water - Conservation 1,538,930 - - - 1,538,930 1,070,464 468,466 43.8%Metered Water - Water Delivery - 22,424,487 - - 22,424,487 22,060,756 363,731 1.6%Affordability Discount Program (160,571) (128,743) (295,673) - (584,987) (546,915) (38,072) 7.0%Wastewater System - - 23,206,749 - 23,206,749 23,262,235 (55,486) -0.2%Wastewater Surcharge - - 458,641 - 458,641 582,262 (123,621) -21.2%Chilled water - - - 862,222 862,222 867,946 (5,724) -0.7%Operating Transfer 469,167 (469,167) - - - - - - Less: Uncollectable Accounts (779,612) (513,357) (622,541) - (1,915,510) (418,407) (1,497,103) -357.8%

Total operating revenues 31,068,871 21,470,975 22,788,690 862,222 76,190,758 76,423,968 (233,210) -0.3%

NON-OPERATING REVENUESInterest earned and miscellaneous 313,060 343,860 334,015 11,696 1,002,631 1,416,667 (414,036) -29.2%Interest earned on Project Fund 273 8,193 32,475 188 41,129 250,000 (208,871) -83.5% Total non-operating revenues 313,333 352,053 366,490 11,884 1,043,760 1,666,667 (622,907) -37.4%

CAPITAL CONTRIBUTIONSCapital Recovery and Service Extension Fees 4,847,127 3,328,305 4,036,709 - 12,212,141 9,114,760 3,097,381 34.0% Total capital contributions 4,847,127 3,328,305 4,036,709 - 12,212,141 9,114,760 3,097,381 34.0%

TOTAL SOURCES OF FUNDS $ 36,229,331 $ 25,151,333 $ 27,191,889 $ 874,106 $ 89,446,659 $ 87,205,395 $ 2,241,264 2.6%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 3,129,036 $ 5,248,419 $ 5,835,933 $ 156,941 $ 14,370,329 $ 13,757,813 $ (612,516) -4.5%Contractual services 14,277,678 3,823,660 3,360,410 508,135 21,969,883 25,083,960 3,114,077 12.4%Materials and supplies 350,395 642,876 1,271,556 15,013 2,279,840 2,109,447 (170,393) -8.1%Other charges 148,178 222,056 274,763 15,398 660,395 1,018,078 357,683 35.1%Capitalized cost (488,583) (1,127,909) (895,874) (9,162) (2,521,528) (2,662,779) (141,251) -5.3% Total operation and maintenance 17,416,704 8,809,102 9,846,788 686,325 36,758,919 39,306,519 2,547,600 6.5%

OPERATING RESERVE REQUIREMENT - - - - - - - -

DEBT REQUIREMENTSRevenue Bonds: Interest costs 1,623,960 3,150,254 4,006,696 63,446 8,844,356 10,256,840 1,412,484 13.8% Retirement of bonds 1,504,574 2,988,045 3,083,607 111,274 7,687,500 8,446,759 759,259 9.0%Subordinate lien debt: Interest costs 138,451 21,743 51,159 32,396 243,749 251,294 7,545 3.0% Retirement of bonds 200,695 31,519 74,159 46,959 353,332 373,991 20,659 5.5% Net variable interest - swap (975) 165 (360) (228) (1,398) - 1,398 0.0% Commercial paper notes 15,180 101,116 2,472 800 119,568 714,175 594,607 83.3%Other Debt Expense 52,916 65,594 84,114 7,818 210,442 207,389 (3,053) -1.5% Total debt requirements 3,534,801 6,358,436 7,301,847 262,465 17,457,549 20,250,448 2,792,899 13.8%

TRANSFER TO THE CITY'S GENERAL FUND 1,141,146 867,868 924,908 34,957 2,968,879 2,994,102 25,223 0.8%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 4,847,400 3,336,498 4,069,184 188 12,253,270 9,364,760 2,888,510 30.8%UNRESTRICTED 9,289,280 5,779,429 5,049,162 (109,829) 20,008,042 15,289,566 4,718,476 30.9% Total amount available for R&R Funds 14,136,680 9,115,927 9,118,346 (109,641) 32,261,312 24,654,326 7,606,986 30.9%

TOTAL USES OF FUNDS $ 36,229,331 $ 25,151,333 $ 27,191,889 $ 874,106 $ 89,446,659 $ 87,205,395 $ 2,241,264 2.6%

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

6

San Antonio Water SystemCONSOLIDATING SCHEDULE OF SOURCES AND USES OF FUNDS

Seven months ended July 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. $ 592,906 $ - $ - $ - $ 592,906 $ 1,844,038 $ (1,251,132) -67.8%Water Supply Fee 130,163,440 - - - 130,163,440 131,441,130 (1,277,690) -1.0%EAA/TCEQ Pass Through Fees 12,542,261 1,091,692 287,272 - 13,921,225 14,561,102 (639,877) -4.4%Recycled water system 3,583,705 - - - 3,583,705 3,532,608 51,097 1.4%Stormwater 2,937,987 - - - 2,937,987 3,035,662 (97,675) -3.2%Metered Water - Conservation 6,504,631 - - - 6,504,631 5,727,784 776,847 13.6%Metered Water - Water Delivery - 128,162,047 - - 128,162,047 130,164,396 (2,002,349) -1.5%Affordability Discount Program (1,081,443) (867,082) (1,991,289) - (3,939,814) (3,755,761) (184,053) -4.9%Wastewater System - - 155,379,743 - 155,379,743 157,904,971 (2,525,228) -1.6%Wastewater Surcharge - - 3,180,653 - 3,180,653 3,404,393 (223,740) -6.6%Chilled water - - - 5,466,446 5,466,446 6,075,622 (609,176) -10.0%Operating Transfer 3,284,167 (3,284,167) - - - - - - Less: Uncollectable Accounts (3,382,863) (2,227,337) (2,701,080) - (8,311,280) (2,928,849) (5,382,431) -183.8%

Total operating revenues 155,144,791 122,875,153 154,155,299 5,466,446 437,641,689 451,007,096 (13,365,407) -3.0%

NON-OPERATING REVENUESInterest earned and miscellaneous 3,278,723 3,525,030 3,388,297 92,777 10,284,827 10,934,570 (649,743) -5.9%Interest earned on Project Fund 7,237 317,460 636,507 5,477 966,681 1,750,000 (783,319) -44.8% Total non-operating revenues 3,285,960 3,842,490 4,024,804 98,254 11,251,508 12,684,570 (1,433,062) -11.3%

CAPITAL CONTRIBUTIONSCapital Recovery and Service Extension Fees 24,826,934 16,982,550 19,551,510 - 61,360,994 58,907,056 2,453,938 4.2%Contributions in aid of construction - 600,400 - - 600,400 - 600,400 - Total capital contributions 24,826,934 17,582,950 19,551,510 - 61,961,394 58,907,056 3,054,338 5.2%

TOTAL SOURCES OF FUNDS $ 183,257,685 $ 144,300,593 $ 177,731,613 $ 5,564,700 $ 510,854,591 $ 522,598,722 $ (11,744,131) -2.2%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 21,201,961 $ 35,099,572 $ 39,298,971 $ 1,045,896 $ 96,646,400 $ 97,146,967 $ 500,567 0.5%Contractual services 71,064,554 19,981,201 20,240,801 3,318,621 114,605,177 139,674,319 25,069,142 17.9%Materials and supplies 1,913,921 4,108,102 7,629,535 350,075 14,001,633 14,622,325 620,692 4.2%Other charges 840,869 1,247,677 1,505,623 99,975 3,694,144 6,986,846 3,292,702 47.1%Capitalized cost (3,326,383) (7,795,255) (6,273,173) (58,915) (17,453,726) (18,705,698) (1,251,972) -6.7%

Total operation and maintenance 91,694,922 52,641,297 62,401,757 4,755,652 211,493,628 239,724,759 28,231,131 11.8%

OPERATING RESERVE REQUIREMENT 12,818,136 (118,892) 1,533,756 22,843 14,255,843 5,008,836 (9,247,007) -184.6%

DEBT REQUIREMENTSRevenue Bonds: Interest costs 11,734,467 22,484,845 27,756,619 466,729 62,442,660 71,797,882 9,355,222 13.0% Retirement of bonds 10,221,586 20,482,951 20,079,647 757,149 51,541,333 59,127,315 7,585,982 12.8%Subordinate lien debt: Interest cost 938,342 147,365 346,725 219,559 1,651,991 1,853,942 201,951 10.9% Retirement of bonds 1,369,841 215,130 506,173 320,522 2,411,666 2,411,567 (99) 0.0% Net variable interest - swap (8,463) (1,012) (3,125) (1,981) (14,581) - 14,581 - Commercial paper notes 145,949 886,824 92,864 7,921 1,133,558 4,999,225 3,865,667 77.3%Other Debt Expense 370,414 459,156 588,798 54,729 1,473,097 1,451,723 (21,374) -1.5% Total debt requirements 24,772,136 44,675,259 49,367,701 1,824,628 120,639,724 141,641,654 21,001,930 14.8%

TRANSFER TO THE CITY'S GENERAL FUND 5,639,747 5,024,708 6,286,275 222,369 17,173,099 17,712,950 539,851 3.0%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 24,834,171 17,900,410 20,188,017 5,477 62,928,075 60,657,056 2,271,019 3.7%UNRESTRICTED 23,498,573 24,177,811 37,954,107 (1,266,269) 84,364,222 57,853,467 26,510,755 45.8% Total amount available for R&R Funds 48,332,744 42,078,221 58,142,124 (1,260,792) 147,292,297 118,510,523 28,781,774 24.3%

TOTAL USES OF FUNDS $ 183,257,685 $ 144,300,593 $ 177,731,613 $ 5,564,700 $ 510,854,591 $ 522,598,722 $ (11,744,131) -2.2%

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 July 2020

SOURCES OF FUNDS Recycle BudgetWater Water Stormwater Total Current Favorable

OPERATING REVENUES Resources System Conservation System System Allotments (Unfavorable) VarianceWater Resources - Misc. $ 25,597 $ - $ - $ - $ 25,597 $ 263,434 $ (237,837) -90.3%Water Supply Fee 26,704,538 - - - 26,704,538 25,783,339 921,199 3.6%EAA Fee 2,243,872 - - - 2,243,872 2,285,839 (41,967) -1.8%Recycled water system - 607,029 - - 607,029 582,650 24,379 4.2%Stormwater - - - 419,921 419,921 433,666 (13,745) -3.2%Metered Water - Conservation - - 1,538,930 - 1,538,930 1,070,464 468,466 43.8%Affordability Discount Program (160,571) - - - (160,571) (150,076) (10,495) 7.0%Operating Transfer 469,167 - - - 469,167 469,167 - 0.0%Less: Uncollectable Accounts (621,200) (14,174) (24,327) (119,911) (779,612) (114,576) (665,036) -580.4% Total operating revenues 28,661,403 592,855 1,514,603 300,010 31,068,871 30,623,907 444,964 1.5%

NON-OPERATING REVENUESInterest earned and miscellaneous 310,983 1,117 644 316 313,060 425,000 (111,940) -26.3%Interest earned on Project Fund & R&R Funds 273 - - - 273 75,000 (74,727) -99.6% Total non-operating revenues 311,256 1,117 644 316 313,333 500,000 (186,667) -37.3%

CAPITAL CONTRIBUTIONSCapital Recovery Fees 4,847,127 - - - 4,847,127 3,494,098 1,353,029 38.7% Total capital contributions 4,847,127 - - - 4,847,127 3,494,098 1,353,029 38.7%

TOTAL SOURCES OF FUNDS $ 33,819,786 $ 593,972 $ 1,515,247 $ 300,326 $ 36,229,331 $ 34,618,005 $ 1,611,326 4.7%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 2,391,256 $ 90,819 $ 379,592 $ 267,369 $ 3,129,036 $ 3,074,320 $ (54,716) -1.8%Contractual services 13,751,414 152,647 269,433 104,184 14,277,678 16,705,582 2,427,904 14.5%Materials and supplies 318,179 23,358 4,383 4,475 350,395 448,133 97,738 21.8%Other charges 107,247 7,686 20,714 12,531 148,178 223,428 75,250 33.7%Capitalized cost (441,670) (18,686) (14,795) (13,432) (488,583) (481,087) 7,496 1.6% Total operation and maintenance 16,126,426 255,824 659,327 375,127 17,416,704 19,970,376 2,553,672 12.8%

OPERATING RESERVE REQUIREMENT - - - - - - - -

DEBT REQUIREMENTSRevenue Bonds: Interest costs 1,432,002 191,958 - - 1,623,960 1,684,522 60,562 3.6% Retirement of bonds 1,092,245 412,329 - - 1,504,574 1,512,021 7,447 0.5%Subordinate lien debt: Interest costs 125,292 13,159 - - 138,451 147,228 8,777 6.0% Retirement of bonds 181,619 19,076 - - 200,695 197,777 (2,918) -1.5% Net variable interest - swap (883) (92) - - (975) - 975 0.0%Commercial Paper Notes 15,180 - - - 15,180 45,167 29,987 66.4%Other Debt Expense 50,782 2,134 - - 52,916 52,738 (178) -0.3% Total debt requirements 2,896,237 638,564 - - 3,534,801 3,639,453 104,652 2.9%

TRANSFER TO THE CITY'S GENERAL FUND 1,069,141 11,396 60,609 - 1,141,146 1,122,432 (18,714) -1.7%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 4,847,400 - - - 4,847,400 3,569,098 1,278,302 35.8%UNRESTRICTED 8,880,582 (311,812) 795,311 (74,801) 9,289,280 6,316,646 2,972,634 47.1% Total amount available for R&R Funds 13,727,982 (311,812) 795,311 (74,801) 14,136,680 9,885,744 4,250,936 43.0%

TOTAL USES OF FUNDS $ 33,819,786 $ 593,972 $ 1,515,247 $ 300,326 $ 36,229,331 $ 34,618,005 $ 1,611,326 4.7%

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

8

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

Seven months ended July 2020

SOURCES OF FUNDS RecycleWater Water Stormwater Total Current Favorable

OPERATING REVENUES Resources System Conservation System System Allotments (Unfavorable) VarianceWater Resources - Misc. $ 592,906 $ - $ - $ - $ 592,906 $ 1,844,038 $ (1,251,132) -67.8%Water Supply Fee 130,163,440 - - - 130,163,440 131,441,129 (1,277,689) -1.0%EAA Fee 12,542,261 - - - 12,542,261 13,184,209 (641,948) -4.9%Recycled water system - 3,583,705 - - 3,583,705 3,532,608 51,097 1.4%Stormwater - - - 2,937,987 2,937,987 3,035,662 (97,675) -3.2%Metered Water - Conservation - - 6,504,631 - 6,504,631 5,727,784 776,847 13.6%Affordability Discount Program (1,081,443) - - - (1,081,443) (1,030,599) (50,844) 4.9%Operating Transfer 3,284,167 - - - 3,284,167 3,284,167 - 0.0%Less: Uncollectable Accounts (2,695,262) (61,503) (105,553) (520,545) (3,382,863) (802,032) (2,580,831) -321.8% Total operating revenues 142,806,069 3,522,202 6,399,078 2,417,442 155,144,791 160,216,966 (5,072,175) -3.2%

NON-OPERATING REVENUESInterest earned and miscellaneous 3,232,121 28,687 12,009 5,906 3,278,723 3,293,631 (14,908) -0.5%Interest earned on Project Fund & R&R Funds 6,491 746 - - 7,237 525,000 (517,763) -98.6% Total non-operating revenues 3,238,612 29,433 12,009 5,906 3,285,960 3,818,631 (532,671) -13.9%

CAPITAL CONTRIBUTIONSCapital Recovery Fees 24,826,934 - - - 24,826,934 22,581,729 2,245,205 9.9% Total capital contributions 24,826,934 - - - 24,826,934 22,581,729 2,245,205 9.9%

TOTAL SOURCES OF FUNDS $ 170,871,615 $ 3,551,635 $ 6,411,087 $ 2,423,348 $ 183,257,685 $ 186,617,326 $ (3,359,641) -1.8%

USES OF FUNDS

OPERATION AND MAINTENANCE*Salaries and fringe benefits $ 16,167,857 $ 637,791 $ 2,553,707 $ 1,842,606 $ 21,201,961 $ 21,774,175 $ 572,214 2.6%Contractual services 67,787,074 646,952 2,001,551 628,977 71,064,554 85,011,513 13,946,959 16.4%Materials and supplies 1,758,654 66,298 33,874 55,095 1,913,921 3,158,705 1,244,784 39.4%Other charges 615,878 48,656 109,146 67,189 840,869 1,536,080 695,211 45.3%Capitalized cost (3,026,685) (117,013) (99,619) (83,066) (3,326,383) (3,459,563) (133,180) -3.8% Total operation and maintenance 83,302,778 1,282,684 4,598,659 2,510,801 91,694,922 108,020,910 16,325,988 15.1%

OPERATING RESERVE REQUIREMENT 12,850,553 (3,353) 16,468 (45,532) 12,818,136 4,784,749 (8,033,387) -167.9%

DEBT REQUIREMENTSRevenue Bonds: Interest costs 10,323,605 1,410,862 - - 11,734,467 11,791,654 57,187 0.5% Retirement of bonds 7,363,412 2,858,174 - - 10,221,586 10,584,147 362,561 3.4%Subordinate lien debt: Interest costs 849,155 89,187 - - 938,342 1,030,596 92,254 9.0% Retirement of bonds 1,239,637 130,204 - - 1,369,841 1,384,439 14,598 1.1% Net variable interest - swap (7,659) (804) - - (8,463) - 8,463 - Commercial paper notes 145,949 - - - 145,949 316,169 170,220 53.8%Other Debt Expense 355,474 14,940 - - 370,414 369,166 (1,248) -0.3% Total debt requirements 20,269,573 4,502,563 - - 24,772,136 25,476,171 704,035 2.8%

TRANSFER TO THE CITY'S GENERAL FUND 5,327,807 55,497 256,443 - 5,639,747 5,803,677 163,930 2.8%AMOUNT AVAILABLE FOR R&R FUNDS:

RESTRICTED 24,833,425 746 - - 24,834,171 23,106,729 1,727,442 7.5%UNRESTRICTED 24,287,479 (2,286,502) 1,539,517 (41,921) 23,498,573 19,425,090 4,073,483 21.0% Total amount available for R&R Funds 49,120,904 (2,285,756) 1,539,517 (41,921) 48,332,744 42,531,819 5,800,925 13.6%

TOTAL USES OF FUNDS $ 170,871,615 $ 3,551,635 $ 6,411,087 $ 2,423,348 $ 183,257,685 $ 186,617,326 $ (3,359,641) -1.8%

Budget

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

9

San Antonio Water SystemOPERATION AND MAINTENANCE EXPENSE BY ACCOUNT

For the Seven Months Ended July 31, 2020

Annual Current Month Year to Date

Budget Variance

Classification Actual Budget Actual Budget (Over)/Under %

SALARIES AND FRINGE BENEFITS

511100 Salaries 110,689,639$ 9,317,989$ 9,196,559$ 62,907,378$ 63,933,402$ 1,026,025$ 1.6%

511140 Overtime Pay 5,757,997 548,310 475,230 3,436,539 3,405,274 (31,265) -0.9%

511150 On-Call Pay 678,374 73,480 56,817 463,461 394,669 (68,792) -17.4%

511160 Employee Insurance 17,506,550 1,477,316 1,459,277 10,260,134 10,212,949 (47,185) -0.5%

511162 Retirement 23,258,428 1,990,528 1,944,930 13,195,533 13,564,873 369,339 2.7%

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

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

511168 Accrued Vacation leave 1,200,000 337,706 - 2,008,355 1,200,000 (808,355) -67.4%

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

511175 Other Post Employment Benefits 7,500,000 625,000 625,000 4,375,000 4,375,000 - 0.0%

Salaries and Fringe Benefits Total 167,671,788 14,370,328 13,757,813 96,646,399 97,146,966 500,567 0.5%

CONTRACTUAL SERVICES

511210 Operating Expense 1,519,288 172,769 81,522 801,861 1,007,868 206,007 20.4%

511211 Rental of Facilities 274,549 64,561 22,754 145,954 160,777 14,824 9.2%

511212 Alarm and Security 1,938,649 149,352 161,554 948,148 1,130,880 182,732 16.2%

511214 Uniforms and Shoe Allowance 442,267 17,674 35,696 212,614 277,833 65,219 23.5%

511215 Box Lunch Program - - - 415,447 - (415,447) 0.0%

511216 Catering Svcs and Luncheons 123,207 14,769 9,192 43,046 70,938 27,892 39.3%

511218 Project Agua Assistance 400,000 35,073 33,333 217,810 233,335 15,525 6.7%

511219 Conservation Programs 3,625,153 224,645 436,349 1,365,317 2,043,758 678,440 33.2%

511220 Maintenance Expense 20,290,918 1,930,108 1,665,422 10,726,514 12,422,436 1,695,922 13.7%

511221 Street Cut Permit Admin Fee 841,431 13,540 70,119 253,330 490,835 237,505 48.4%

511222 St Pave/Repair Fee 1,800,545 79,262 150,046 366,479 1,050,319 683,840 65.1%

511224 Auto and Equip. Maintenance P 1,563,218 286,475 130,268 1,133,070 911,877 (221,193) -24.3%

511225 Damage Repair 150,000 5,237 12,500 88,795 87,500 (1,295) -1.5%

511230 Equipment Rental Charges 308,521 5,036 28,810 845,239 183,071 (662,168) -361.7%

511240 Travel 223,852 912 11,012 25,059 138,689 113,629 81.9%

511245 Training 667,750 20,928 35,851 163,879 281,392 117,513 41.8%

511247 Conferences 108,501 2,300 5,208 15,259 77,915 62,655 80.4%

511250 Memberships and Subscriptions 499,888 (74,246) 22,828 195,135 357,712 162,577 45.5%

511260 Utilities 39,671,678 3,116,029 4,082,349 17,364,604 21,320,801 3,956,198 18.6%

511261 Water Options 110,944,827 10,481,330 11,578,204 45,834,816 52,885,056 7,050,240 13.3%

511265 Ground Water District Pay 23,297,592 1,926,436 1,941,465 13,467,365 13,590,258 122,893 0.9%

511270 Mail and Parcel Post 2,288,484 221,933 190,549 1,229,329 1,335,165 105,836 7.9%

511280 Telemetering Charges 3,360 172 280 1,205 1,960 755 38.5%

511310 Educational Assistance 76,553 5,623 5,240 36,123 41,371 5,249 12.7%

511312 Contractual Prof Svcs 37,121,263 2,176,451 3,166,839 11,526,005 20,910,416 9,384,411 44.9%

511313 Inspect and Assessment Fees 2,469,186 190,654 204,491 1,340,492 1,442,623 102,131 7.1%

511315 Temporary Employees 739,992 94,018 71,250 687,810 438,748 (249,062) -56.8%

511316 Medical Services 135,500 2,734 6,407 39,655 72,203 32,548 45.1%

511317 Medical Testing-Covid 19 - 87,687 - 120,357 - (120,357) 0.0%

511320 Legal Services 2,273,907 70,028 177,361 674,232 1,387,084 712,853 51.4%

511370 Communications 1,671,015 40,666 138,949 604,712 976,256 371,544 38.1%

511381 Software and Hardware Mainten 7,385,803 607,728 608,112 3,715,519 4,345,244 629,726 14.5%

Contractual Services Total 262,856,898 21,969,883 25,083,960 114,605,178 139,674,317 25,069,140 18.0%

Excludes the non‐cash portion of benefit expense.

10

San Antonio Water SystemOPERATION AND MAINTENANCE EXPENSE BY ACCOUNT

For the Seven Months Ended July 31, 2020

Annual Current Month Year to Date

Budget Variance

Classification Actual Budget Actual Budget (Over)/Under %

MATERIALS AND SUPPLIES

511410 Small Tools 687,639 43,569 57,561 392,998 403,121 10,123 2.5%

511417 Copy and Printing Expense 22,708 - 2,239 4,829 13,898 9,069 65.3%

511420 Operating Materials 2,420,827 143,278 216,160 1,168,760 1,431,845 263,085 18.4%

511421 Heating Fuel 15,500 - 1,250 5,663 9,000 3,337 37.1%

511422 Chemicals 8,931,256 999,667 738,693 4,957,230 5,202,977 245,748 4.7%

511425 Education of School Children 30,000 - 2,500 6,994 17,500 10,506 60.0%

511426 Public Awareness-WQEE 1,000 - 83 - 581 581 100.0%

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

511430 Maintenance Materials 8,889,073 713,881 740,996 5,198,558 5,186,422 (12,136) -0.2%

511435 Safety Materials & Supplies-Cov - 26,488 - 105,250 - (105,250) 0.0%

511440 Safety Materials and Supplies 868,748 120,063 72,331 764,783 507,150 (257,634) -50.8%

511441 Inventory Variances - (2,061) - (32,015) - 32,015 0.0%

511450 Tires and Tubes 550,000 80,511 45,833 366,303 320,833 (45,470) -14.2%

511451 Motor Fuel and Lubricants 2,552,087 154,444 231,802 1,062,047 1,528,998 466,951 30.5%

Materials and Supplies Total 24,973,838 2,279,840 2,109,447 14,001,633 14,622,325 620,692 4.2%

OTHER CHARGES

511510 Judgements and Claims 725,000 39,600 60,415 (235,311) 422,905 658,216 155.6%

511511 AL/GL Claims - Cont. Liab. 330,000 - 27,500 (576,751) 192,500 769,251 399.6%

511520 Bank Charges 125,260 24,771 12,526 57,215 87,682 30,467 34.8%

511525 Cash Short/(Over) - 1,753 - 1,496 - (1,496) 0.0%

511530 Employee Relations 208,590 2,927 21,788 58,922 92,816 33,894 36.5%

511540 Retiree Insurance 8,240,694 460,445 686,724 3,396,855 4,807,071 1,410,216 29.3%

511570 Casualty Insurance 1,139,513 91,755 94,960 652,780 664,720 11,940 1.8%

511580 Unemployment Compensation 80,000 - 20,000 15,243 60,000 44,757 74.6%

511590 Workers Comp Medical 1,130,000 39,147 94,165 323,694 659,155 335,461 50.9%

Other Charges Total 11,979,057 660,396 1,018,078 3,694,144 6,986,849 3,292,705 47.1%

O&M Before Capitalized Cost 467,481,580 39,280,447 41,969,298 228,947,354 258,430,458 29,483,104 11.4%

Capitalized Cost (31,499,999) (2,521,529) (2,662,779) (17,453,727) (18,705,699) (1,251,973) -6.7%

Total O&M Expense 435,981,582$ 36,758,919$ 39,306,518$ 211,493,628$ 239,724,758$ 28,231,131$ 11.8%

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 70,197,945 70,197,945 0.060 1

External Investment Pools: Texas Class Investment Pool 461,525,659 461,525,659 0.410 1 Texpool Prime Local Gov't Pool 40,554,012 40,554,012 0.380 1 Total External Investment Pools 502,079,671 502,079,671 0.408 1

Municipal Bonds 104,204,910 102,508,452 1.807 728

Government Agency Securities: Federal Agricultural Mtg Corp 18,143,230 17,990,825 2.286 203 Federal Farm Credit Bank 75,972,344 74,554,541 2.514 337 Federal Home Loan Bank 80,156,094 79,277,108 2.512 203 Federal Home Loan Mtg. Corp. 40,921,136 40,651,387 1.716 938 Federal National Mtg. Assn. 33,770,640 33,355,524 1.739 799 Total Government Agencies 248,963,444 245,829,385 2.260 446

U. S. Treasury Securities 97,948,762 96,352,564 2.101 341

Total Investments 1,023,394,732$ 1,016,968,017$ 1.132 214

July 31, 2020

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San Antonio Water SystemKEY FINANCIAL RATIOS

For the Period Ended July 31, 2020

July 31, 2020 July 31, 2019

Total Long-term Debt (a) 2,991,355,913$ 2,886,704,789$

Total Water & Sewer Customer Connections (b) 992,285 971,088

Long-term Debt Per Connection (a)/(b) 3,015$ 2,973$

Total Net Position 3,614,623,396$ 3,264,112,527$

Total Liabities & Net Position 7,982,683,975$ 6,578,056,439$

Net Position Ratio 45.3% 49.6%

YTD Operating Revenues (c) 437,641,687$ 391,740,174$ YTD Operating Expenses before Depreciation (d) 193,144,551$ 193,254,963$

Cash Operating Margin ((c)-(d))/(c) 55.9% 50.7%

Rolling 12 MonthsOperating Revenues 779,080,037$ 687,057,066$ Non-Operating Revenues 22,150,228 28,762,230Less: Revenues from CPS contract (3,598,251) (3,443,498) Interest Earned on Project Fund Investments (2,258,724) (4,223,510) Build America Bond Subsidy (2,515,652) (3,522,822)

Gross Revenues 792,857,638$ 704,629,466$

O&M Expense before Depreciation 360,387,635$ 339,113,637$

Pledged Revenue* 432,470,003$ 365,515,829$

Debt Service - Net of Build America Bond Subsidy:Current Year Annual Senior Lien 41,550,016$ 47,648,866$ Current Year Annual Total Bonded Debt 191,013,435$ 192,189,337$

Senior Lien Debt Coverage Ratio 10.41 x 7.67 x

Total Bonded Debt Coverage Ratio 2.26 x 1.90 x

Unrestricted Cash & Investments 521,481,392$ 440,142,925$

Days Cash on Hand - Rolling 12 Months of O&M 528 474

Unrestricted Working Capital 532,997,481$ 456,855,884$

Days Working Capital on Hand - Rolling 12 Months of O&M 540 492

Total Long-term Debt 2,991,355,913$ 2,886,704,789$ Bonds Payable Within One Year 92,250,000 86,115,000$

Total Debt Outstanding (e) 3,083,605,913$ 2,972,819,789$

Rolling 12 Months

Operating Revenues (g) 779,080,037$ 687,057,066$ Non-Operating Revenues 22,150,228 28,762,230Gain (Loss) on Sale of Fixed Assets 531,001 841,896Capital Recovery Fees 101,320,325 85,857,909Less: O&M Expense before Depreciation (360,387,635) (339,113,637)

Funds Available for Debt Service (FADS) (f) 542,693,956$ 463,405,464$

Total Debt to FADS Ratio (e)/(f) 5.68 x 6.42 x

Total Debt to Operating Revenue Ratio (e)/(g) 3.96 x 4.33 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)July Above

2020 2019 Prior Year

Current Month Actual 0.2 0.1 14 %

Normal 2.7 2.7 0 %Percent Above(Below) Normal (94) % (95) %

Year to DateActual 14.2 15.0 (5) %Normal 18.9 18.9 0 %Percent Above(Below) Normal (25) % (21) %

Number of Days with Rain 2 2

SAWS Total Water Pumpage - Month 8,288 8,088 2 %

Water Pumpage for Injection to Twin Oaks ASR 15 351 (96) %Water Pumpage for Consumption 8,273 7,737 7 %

(Includes Water Produced from ASR)

SAWS Billed Water Usage (Domestic and Irrigation)* 6,500 5,485 19 %

SAWS Billed Wastewater Usage 4,279 4,213 2 %

SAWSNumber of Connections (Billed Accounts) - Water 523,775 512,509 2 %Number of Connections (Billed Accounts) - Wastewater 468,510 458,579 2 %

Water - Miles of Main 7,322 7,211 2 % Wastewater - Miles of Main 5,659 5,593 1 % Manholes 111,786 109,866 2 % Fire Hydrants 42,861 42,090 2 %

High 660.4 684.1 (23.7) Feet Low 653.6 672.6 (19.0) Feet End of Month 655.9 672.6 (16.7) 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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