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ESU reports reduced water billings and upcoming invoice adjustments from vendor; operating expenses below projection
Summary
Assistant comptroller told the ESU board revenues were down due to about 10 million gallons of reduced billed water; a Riverside meter true-up and an adjusted invoice from vendor Karma are expected soon and will improve revenue figures. Operating expenses are currently below projections and full-time-equivalent (FTE) reporting was added to packet.
At the Oct. 20 meeting the Kankakee City ESU board heard a financial update showing revenue below the year-to-date expectation, operational expenses modestly under projection and several near-term adjustments that should affect month-to-month results.
Revenue and billing
The assistant comptroller said the department was roughly at month 5 of the fiscal year and that revenues were near 33% of year-to-date budget due in part to a reduction of about 10 million gallons reflected in recently posted billing numbers. Staff said Riverside’s broken meter will be trued up in the next billing cycle and is expected to increase revenues in coming weeks.
Vendor invoice adjustments
Staff told the board that a vendor, Karma (the wastewater-treatment services vendor referenced in the packet), had been invoicing at a lower monthly amount for several months because of incorrect invoicing on Karma’s side. The city received a corrected invoice that includes a true-up for the previous months; staff warned the board to expect a significant increase on that vendor line in the next 30 days when the corrected invoices are processed.
Expenses, labor and FTEs
Overall operating expenses were modestly under projection (expenses reported 8.332% lower than projections in the packet). The packet also included a new graphic reporting full-time equivalents (FTEs) for ESU (55 employees; FTEs 55.95) that staff said helps monitor overtime and staffing needs; DPW numbers were reported separately and expected to rise during leaf pickup season.
Why it matters: Revenue shortfalls and corrected vendor invoices can create short-term cash-flow swings and affect near-term budget reporting. The Riverside true-up and Karma corrected invoice are expected to increase revenues and expenses respectively in the next reporting period.
Provenance: financial figures, the 10 million-gallon billing adjustment and the Karma invoicing issue are discussed in transcript segments beginning at roughly 960.59 through 1320.48.
