Auditor gives Waukesha utility a clean opinion for 2024; debt and cash metrics highlighted

The Waukesha Water Utility received a clean (unmodified) audit opinion for fiscal year 2024, Jody Dobson reported to the utility commission on June 19.

Dobson said the audit followed standard testing and that the financial statements present fairly and accurately. She highlighted a 4.1% rate of return for 2024 (noting the second-step rates took effect partway through the year), an improved operating margin compared with 2023, and a stable cash balance despite months-of-cash-on-hand declining from earlier levels. Dobson also noted the utility’s investment-in-capital is currently financed about 81% by outstanding debt—a result she attributed to completing a large capital project—and said that ratio should decline over time as debt is paid down.

Why it matters: The auditor emphasized benchmarks the rating agencies watch when a utility issues debt, including coverage ratios and months of operating cash; the utility’s 2024 debt-coverage ratio exceeded the 1.1 minimum and was reported at roughly 7.1, well above the requirement. Dobson recommended continued monitoring of operating expenses and cash reserves as the utility moves from major capital construction to stabilization.

Follow-up: Commissioners had questions about expense trends and the effect of one-time items; staff said some 2023 costs were timing-related and that 2025 projections should more closely reflect ongoing operations. The commission thanked staff for the clean audit and noted the audit will be finalized in the appropriate acceptance process.