Waterworks financials: revenues up about $1 million year-over-year; O&M lines mixed

Finance staff told the Board of Water Commissioners on Feb. 27 that operating revenues for recent billing cycles are higher than last year and that the utility remains "in very good shape" financially.

Mia, the utility’s finance presenter, said operating revenue for billing cycles covering August through December is up about $1 million compared with the prior year and that water sales and service charges were higher, in part following a dry summer.

Mia reported division-level expenditure rates she characterized as on track: watershed expenses at about 68% expended for the year-to-date, the water supply division at about 50%, and distribution appearing at about 71% as currently coded. Mia said she is reviewing distribution repair and maintenance charges because some costs posted to O&M (operations and maintenance) may more properly be capital-project charges and could be reclassified.

Mia said salaries and wages across divisions were just under 60% of budget and that total operating revenues were roughly 60% of budgeted expectations, which she described as encouraging. Comparative water consumption stood at 115% of last year, she said, and service charges were up roughly 9%.

On accounts receivable, Mia said accounts over 90 days are about 5% of receivables and that staff are tracking collections.

Commissioners asked a number of clarifying questions about purchase power (electricity) costs, the pacing of line-item expenditures, and whether demand-response programs and new energy contracts will yield offsetting revenues. Mia and Phil said a new electricity contract for treatment purchase power took effect in November and should reduce per-kilowatt-hour costs compared with the prior Constellation contract; staff also noted participation in demand-response programs that generate intermittent revenues.

The board then voted to accept monthly invoices, advance drafts and p-card payments totaling $855,773.86.