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NET ASSETS
<br />To begin our analysis, a summary of the Utilities' Statements of Net Assets is presented in Table A-l . As can be seen from the
<br />Table, net assets increased $1,218,524 to $47,583,084 in fiscal 2010 up from $46,364,560 in fisca12009.
<br />TABU A-1
<br />Condensed Statement of Net Assets
<br />Increase
<br />2010 2009 (Decrease)
<br />Assets
<br />Current and other
<br />Capital
<br />$ 14,346,202 $ 14,948,372 $ (602,170)
<br />50,095,964 51,626,923 (1,530,959)
<br />Total assets
<br />Liabilities
<br />Current
<br />Non-current
<br />Total liabilities
<br />Net assets
<br />Invested in capital assets, net of related debt
<br />Restricted for debt service
<br />Unrestricted
<br />Total net assets
<br />64,442,166 66,575,295 (2,133,129)
<br />4,331,274 6,547,087 (2,215,813)
<br />12,527,808 13,663,648 (1,135,840)
<br />16,859,082 20,210,735 (3,351,653)
<br />36,525,596
<br />724,500
<br />10 332,688
<br />34,397,277
<br />724,500
<br />11,242,783
<br />2,128,619
<br />(910,095)
<br />$ 47,583,084
<br />$ 46.364,560
<br />$ 1,218,524
<br />Looking at Table A-l, you can see that most of [he change in net assets was realized in the current liabilities, which decreased
<br />$2,215,813 in fiscal 2010. The decrease in current liabilities is a result of the 2001 A bond refunding. This bond was refunded the
<br />prior year, but could not be called until 2010 and so remained in escrow and, therefore, a liability on our books until Feb 2010.
<br />It should be noted that while current assets in total decreased, the cash balances increased. The Utility has a Reserve goal that it is
<br />working towards for the long term financial health of the organization and the increase in cash brings us to that goal. However,
<br />our reserve balances goal does not include a component to cover purchased power costs, which is our largest expense. If we were
<br />to fully fund this component in our reserves, we would have to significantly increase our reserves, by 2 to 5 million dollars at a
<br />minimum Instead, we have chosen to allocate reserve overages to working capital, which allows us to absorb the variations m
<br />purchased power (most notably from fluctuating Power Cos[ Adjustments, PCAs) that are typically passed along from our power
<br />supplier to our customers. With this mechanism in place, as long as we have sufficient reserve balances, we can refrain from
<br />passing these PCAs on to our customers.
<br />Water and Electric Rates
<br />Electric -The latest increase in the Utilities' electric rates was effective January 2011. The monthly base charges are based upon
<br />the type of service. The monthly charges are $9.00 for residential, $16.00 for commercial, and $50.00 for industrial. In addition
<br />to the base charges the residential rate is $.l 165/KWh for May-September usage, and $.1040/KWh for October-April usage; the
<br />commercial rate is $.I 120/KWh for May-September usage, and $0.0929/KWh for October-April usage; the industrial rate is
<br />$.0558/KWh energy charge year round with a demand charge of $15.59/KW May-September, and $11.27/KW for October-April.
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