3.3. ERMUSR 02-14-2012 - Laserfiche WebLink

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YEAR END NARRATIVE 2012 These financial statements are year-end unaudited amounts, and so are preliminary and should be viewed as such. The summary statements include adjustments for year-end accruals of payables, receivables, and capitalized items, as well as some expense items that are estimated at this time, but not finalized yet. There are still items to be completed including final work order adjustments, and due to/from City. The auditors will be here March ls` and 2nd to perform fieldwork on our 2011 year. Preliminary results for the Electric and Water departments are discussed below. Electric Overall, a conservative 2011 budget compares very favorably with the actual 2011 results, and the prior year. The electric operating revenues preliminary numbers ended up better than budget by 1.8% or $484,507, and up 7% from the prior year. Residential sales were up 6% from a flat line forecast, and small commercial sales were up 13%. The data centers increased their load according to their provided forecast, however they ended the year slightly under budgeted projections by 3%. Other revenues also ended better than budget by 2% or $35,842, and down from the prior year by .4%. All revenue items performed consistent with budget, except Interest Income. Interest income accounts for the increase over budget as the sweep savings account investment plan with the bank is performing very well far us. Other investments performed moderately well with low returns, and as forecasted. Purchased power ended up being a total of 73% of the Operating Revenue, same as last year. The purchased power is actually very close (but down by .8%) to budget, and up from the prior year by 6.7%. For other expense items, most were consistent with budget and we ended the year under budget by 2.3% and over last year by 4% (the budgeted increase was 6.9%). Depreciation is down from projections due to many capital projects not being able to be completed this year and pushed to next year. Security expenses are down and this reflects a very favorable margin for 2011, twice the projection. Customer Accounts Expense is down due to lower write-offs and bringing the meter reading services in-house. The electric department ended the year significantly ahead of budget and outperformed the prior year as well. We do have more accruals for audit items, as mentioned above, and so there will be some reduction to these numbers as the final year end statements are produced. From a cash perspective, we increased $1,793,501 from 2010 balances, and this is largely due to capital projects being pushed forward instead of completed this year. While this is a large increase, it is misleading because as these delayed projects are completed, these balances will be depleted.