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ERMU Financials 08-16-2005
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ERMU Financials 08-16-2005
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City Government
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8/16/2005
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1 <br /> ' PROFIT AND LOSS NARRATIVE <br /> ' ELECTRIC <br /> The Operating Revenue for June 2005 was much higher than 2004 due to much warmer <br /> weather. What a difference a month makes! May's usage was down 1,500,000 kilowatt <br /> ' hours and June's usage was up 1,700,000 kilowatt hours from a year ago. <br /> Other Operating Revenue in June 2005 was down compared to June 2004 by <br /> ' approximately $6,000. Connection Fees were down $7,500 over last year(there is less <br /> new construction year) and Customer Penalties were down $1,000 (a negative impact on <br /> ' the bottom line but a good sign that payments are being collected more timely). <br /> Miscellaneous Revenue was up $2,500 (just a reminder that the Miscellaneous Revenue <br /> item is where the security systems' income is being reported for 2005 and so it has been <br /> ' higher than 2004 Miscellaneous Revenue.) <br /> With the high usage in June it follows that the purchased power cost is much higher as <br /> ' well when comparing to last year. And, this is the start of the season of increased power <br /> costs, resulting in a much smaller margin (a mere $34,000) before operating and general <br /> expenses are even considered. Operating Maintenance expense is higher than a year ago <br /> IP by $15,700 due to more maintenance in the areas of meters, underground services, and <br /> vehicles. Depreciation continues to be the third largest expense, increased considerably <br /> from last year. Services to the City is an increased expense over last year as a larger <br /> ' monthly payment is being remitted, $30,000 in 2005 compared to $20,000 in 2004. <br /> General and Administrative Expense is higher by approximately $15,000. $9,000 of this <br /> increase relates to payroll expenses over last year(sick pay up $4,000 and insurances up <br /> $5,000) and $6,000 relates to the purchase of postage. <br /> WATER <br /> The Operating Revenue is up $12,000 over the prior year, and the weather is the factor <br /> here as it was in the Electric. Connection Fees are way down compared to last year, a <br /> difference of almost $200,000 (last year was at an incredible high). The interest income <br /> of$8,000 is $3,900 from the savings account and $4,100 from a CD. <br /> The largest expense for water continues to be depreciation. Pumping Expense is $6,000 <br /> ' higher than in 2004 due to the increased maintenance on wells. The Interest Expense is <br /> higher by approximately $9,000 as a result of the larger accrual this year over last year. <br /> 1 <br />
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