Financial Index 01-13-2009 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE November 2008 Electric P&L Operating Revenues for November were 17% higher this year than last, and 3% over the monthly budgeted amount. The residential customers are still down in budgeted usage by 5% but the commercial customers are over by 7'/2%; with the large industrial customers still the top users. Other revenues show Connection Fees down by $58,000 over last year. The increase includes connect fees from the Church of LDS in Otsego for $53,000 and MN School of Business for $15,000. Security Revenue is up $5,000 over the prior year. Purchased power is up 6% over the prior year, and up 18% year to date. The Other Operating Expense, Landfill Gas and Distribution expenses are consistent with last year. Maintenance expense is up slightly this month compared to last year. The biggest contributing factor to this was maintenance, testing, and calibration done on West Substation 14, bank 3 for $16,000. This is a proactive maintenance item that was started last year to go through a different substation each year and do this testing. Other expenses are in line, or down, compared to the prior year and budget. This nets us showing a 275,000 profit this month. Year to date is showing 1.7 million compared to the 1.2 million budgeted. However, November of 2007 showed 1.9 million of profit and we ended the year at 1.5 million of profit. December brings with it all the year-end adjustments and accruals and usually a significant loss for the month. It is anticipated that we will end the year at least on budget, if not slightly over; a very different ending than we were anticipating 6 months ago. Water P&L Water Sales are up again this month compared to the prior year, this month by approximately $10,000. Usage is up by one million gallons of water with the commercial/industrial sector the biggest user here too, accounting for approximately 800,000 gallons of water usage. Connection Fees are up by the same amount and the total for the month, $42,000, is made up largely from the MN School of Business connection fees of $37,500. Expenses are down from the prior year in total, but with variations of up and down within the components. Production expense is down from last year because of some work on two water towers (of approximately $9,000) that we did not have this year. Pumping expense is up from last year as a bulk fluoride purchase was made. Distribution expense was more last year because there was a water main break that had to be repaired and the cost was approximately $9,000. The net result for the water this month is a loss of (48,000), and is a smaller loss than a year ago. We anticipate ending the year not meeting budget with a small loss or barely a profit. Again, this is a different scenario than we thought it was going to be 6 months ago, and yet still not ideal. ~~