5.7. ERMUSR 02-12-2019 - Laserfiche WebLink

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expense budget,there were areas where expenses were higher than budget and areas where expenses were lower than budget. But overall, the expenses were controlled and met all reasonable expectations for compliance with the budgeting goals. Overall Water Utility performance for 2018 was also strong. Unaudited financial indicate that water margins significantly outperformed budget (-$394,245 Budget, $830,069 Actual). Annual water expenses were down by more than 10% ($2,971,960 Budget, $2,673,262 Actual). An overview of 2018 budget verses actual (unaudited)for both electric and water is provide in the attached summary. While both electric and water performed well and as expected, there were a number of reoccurring areas of discussion over the past year. Are there areas of opportunity to improve or change reporting to provide usable data to appropriately evaluate these areas on a monthly basis?Are those areas of discussion high risk or low risk?What are the triggers and sensitivities for those areas of discussion that would cause concern? Staff looks for discussion on these topics to improve and refine future Annual Business Plans and reports to better service the commission in evaluating organizational health and leading the organization toward the future vision and long term goals. Areas for discussion: • Review budgeting and forecasting for 2018, challenges modeling growth. • Review notable accounts like maintenance with tree trimming, WAC, PCAs, etc... • Capital projects and equipment. Summary The Strategic Plan and the Annual Business Plan are long term and short term tools for the commission to use in governing the organization, establishing policy to clearly communicate goals, and helping the commission lead ERMU toward the organizational vision.These tools should evolve with the commission's needs to effectively evaluate and govern. It is important to annually discuss these tools for their function, separate from the review of the data they contain. The results and progress from the organization's 2018 initiatives were positive, and it is good to recognize our successes. Does the commission have what they need to govern ERMU to sustainable success?Are these tools providing the information the commission needs to effectively evaluate the organization?Are these tools clearly identifying the areas of highest risk enabling the commission to effectively monitor, evaluate, and take corrective action when needed?Are these tools providing the information needed for the commission to effectively lead the organization toward our mission and vision? Staff looks for commission discussion regarding the 2018 results and for discussion regarding the effectiveness of the tools used to provide the commission with meaningful and timely information. ATTACHMENTS: • ERMU Mission/Vision/Fundamentals/Values/Themes • ERMU 2018 Overview Summary of Budget vs Actual (Unaudited) Page 7 of 7 79