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Krebs Utilities Authority reports near-term debt payoff, modest surplus; staff warns engineers will review rates for new plant
Summary
At an April 15 board meeting, financial reviewer Mike Kern reported KUA revenues of $998,937.54 and operating income of $81,548.49 for nine months ended March 31; a Rural Development note of $17,010.39 has two payments remaining and could be paid off within two months, and the KUA still owes the city $183,152.09. Kern said engineers planning a new water plant will examine debt and may recommend rate changes.
At the April 15 meeting of the Krebs Utilities Authority, financial reviewer Mike Kern presented results for the nine months ending March 31 and said the authority is close to budget targets and showing a modest surplus.
Kern reported total revenues of $998,937.54, total operating expenses of $917,389.08 and operating income of $81,548.49. He said the KUA transferred $30,980.78 to the city during the period and that the authority is showing a net profit of $50,567.68 to date.
Kern drew attention to a current Rural Development (RD) note payable listed at $17,010.39 with payments of $6,900 and said there are two remaining payments on that note; he told the board the note is likely to be paid off within about two months. He also reported that the KUA still owes the city $183,152.09 (page two of the financial package).
Kern cautioned that engineers who evaluate plans to rebuild the water plant will review the authority's debt load and may recommend changes to water and sewer rates to ensure sufficient revenue to support new debt. He noted the KUA has historically raised rates about 3–5% annually and that any plant rebuild would require contributions across the customer base.
No board action was taken on rate changes during the meeting; Kern framed the figures as background for future planning and engineering review.
