6.2. ERMUSR 07-15-2008 - Laserfiche WebLink

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When comparing year to date net income profit/loss, it is at 9% this year and was at 46% last year. The early very warm spring of 2007 really made the financials look good very early in the year. This year we are dealing with a cooler spring and a cooler start of summer, still recovering the PCA, and more maintenance. Water P&L Water Sales are ahead year to date by $7,000 but down for the month by $12,000. The spring was much warmer last year and there was more lawn watering because of it. As we head into the summer months, and hopefully warmer weather, our revenue will increase. Water Sales are at 21% of budget, which is typical. The majority of the water revenue for the year is earned in the summer months. Interest Income is higher reflecting the interest on some CDs that matured. Connection Fees are down for the month and for the year, but this is an item that varies considerably from year to year as to when it is collected. Pumping expense is comparable to last year. Distribution expense is up and this is due largely to the maintenance of meters and hydrants. Both are at just over 30% of budget and a good benchmark would be 42%. Depreciation, as mentioned above with the electric department, is a truer number now as our fixed asset schedules are being updated throughout the year and the actual current depreciation is being calculated. Other Operating Expense is higher due to the amortization of the bond refunding that was done this year. (This amortization was not a budgeted line item.) Customer Accounts Expense is in line with budgeted projections, at 37% of budget. Administration and General Expense is at 36% of budget, again, right in line with budgeted projections. Here too, a good benchmark is 42%. The monthly and year to date loss remains on target for the year's budgeted numbers. We should start seeing those positive numbers again as we move through the summer months. 20