2.3. ERMUSR 02-12-2013 - 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 February 28th and March ls'to perform fieldwork on our 2012 year. Preliminary results for the Electric and Water departments are discussed below. Electric Overall, a conservative 2012 budget compares very favorably with the actual 2012 results, and the prior year. Much of the increase in revenue can be attributed to the weather, as it was a hot summer. The electric operating revenues preliminary numbers ended up better than budget by 2.9% and up 5.4% from the prior year. Residential sales were up 10% from a modest forecast, and small commercial sales were up 14%. 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 15%, and up from the prior year by .17%. All revenue items performed better than budget, especially Connection Fees. Interest income accounts for much of the increase over budget as the sweep savings account investment plan with the bank is performing very well for us. Other investments performed moderately well with low returns, 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 .1%)to budget, and up from the prior year by 4.5%. For other expense items, most were consistent with budget and we ended the year under budget by 2% and over last year by 3%. We do have final accruals yet to make (items due the City for shared costs, accounts payable items, and employee related accruals) that will change these numbers,however, we still expect to be very close to budget. 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 $2,232,085 from 2011 balances, and this is mainly due to the operations performance this year due to weather.