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areas ofhigher risk, evaluate options to mitigate risk, establish their comfort level withrisk, and
<br />help the commission clearly communicate expectation in handlingthe risk.
<br />Overall Electric Utilityperformance for 2021 was positive. Unaudited financials indicate that
<br />revenues were up 5% from budget ($39,820,488 budget and $41,830,737 actual) and expenses
<br />were up 4% from budget ($38,468,940 budget and $40,154,847 actual), for a 4% margin overall.
<br />With capital projects, reserve uses, bonding, and depreciation, we outperformed budgeted
<br />reserves contributions (a budgeted reduction of $166,968, versus an actual increase of
<br />$177,453.)
<br />
<br />Overall Water Utility performance for 2021 was very positive. Unaudited financials indicate that
<br />water margins of 30% outperformed budget (-$314,973 budget, $1,346,642 actual).Revenue
<br />was up 59% ($2,778,731 budget, $4,419,823 actual) while annual water expenses were down
<br />1% ($3,093,705 budget, $3,073,181 actual). Net to reserves was higher than budgeted
<br />($306,843 budget, $2,032,499 actual).
<br />
<br />An overview of 2021 budget verses actual (unaudited) for both electric and water is provided in
<br />the attached summary.
<br />
<br />
<br />
<br />
<br />Summary
<br />The Strategic Plan and the Annual Business Plan are long-term and short-term tools for the
<br />commissionto use in governing the organization, establishing policy to clearly communicate
<br />goals, and helping the commission lead ERMU toward the organizational vision. These tools
<br />should evolve with the commission’s needs to effectively evaluate and govern. It is important to
<br />annually discuss these tools for their function; separate from the review of the data they
<br />contain.
<br />
<br />The results and progress from the organization’s 2021 initiatives were positive, and it is good to
<br />recognize our successes.
<br />
<br />An important component to organizational health is communication. Communication is critical
<br />in all areas of an organization, both external and internal. This includes communication
<br />between the commission and management, communication between management and staff,
<br />and communication between departments. Specific to communication between the
<br />commission and management, does the commission have what they need to govern ERMU to
<br />sustainable success? Are these tools providing the information the commission needs to
<br />effectively evaluate the organization? Are these tools clearly identifying the areas of highest
<br />risk, enabling the commission to effectively monitor, evaluate, and take corrective action when
<br />needed? Are these tools providing the information needed for the commission to effectively
<br />lead the organization toward our mission and vision? Staff looks for commission discussion
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