SFPUC - Annual Reports Sustaining What Matters | Page 15

Annual Report for the Fiscal Year Ended June 30, 2014

(4) Deferred outflow of resources is a consumption of
net assets by the government that is applicable to
a future reporting period. For example, prepaid
items and deferred charges.
(5) Net position is the residual of all other elements
presented in a statement of financial position,
i.e. the residual interest in the items owned or
controlled after deducting debts. Over time,
increases or decreases in net position may serve
as a useful indicator of whether the financial
position is improving or worsening.
The Statements of Revenues, Expenses, and Changes
in Net Position shows that we continue to maintain
strong financial health, despite revenue impacts
from the 2013 Rim Fire and the 2014 drought.

We strive to achieve strong financial performance in
areas that fund capital improvements and effectively
control operating costs to not exceed revenues.
Our expenses increased slightly by $38 million or
4.7 percent from last fiscal year, largely explained
by $16 million increase in depreciation expense for
capital assets. Other increases were due to increased
costs for local water conveyance/distribution and
sewer improvement projects, increased electricity
transmission and distribution and purchase costs,
as well as $6.8 million of the Rim Fire extraordinary
loss. Depreciation expense is the allocated cost
of a tangible asset over its useful life, rather than
deducting the cost as an expense in the year
of acquisition.

Five-Year Statements of Revenues,
Expenses, and Changes in Net Position

2013
$32M
$163M
$137M
$232M
$250M

Expenses
Contractual services
Capital project bond interest expense
Depreciation expense
Materials, supplies and other expenses
Personnel services

$1,244M

$814M

2012
$34M
$160M
$123M
$239M
$242M

2014

$803M

$798M

2011

$30M
$151M
$153M
$266M
$252M

Revenues: $836M

14

$35M
$124M
$115M
$196M
$225M
$751M

$695M

2010

$32M
$64M
$106M
$237M
$216M

Expenses: $852M
$635M

$655M