3.3. ERMUSR 01-12-2010 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE November 2009 Electric P&L November revenues are up from the prior year, and greater than budgeted numbers. We aze on target to making our budgeted revenue amount, or at least being very close. For expenses, Purchased Power is up over last yeaz, as would be expected. Yeaz-to-date it is increased over last year by 12%. This number will probably be over budget at year end by a small mazgin. Expenses are down or close to last yeaz with the exception of Depreciation, Security and Customer Accounts. Security reflects advertising costs that had not been applied here previously. Customer Accounts reflects a re-allocation of reconnect costs paid to the Meter Reading Contractor that had been chazged to the water department previously. Administrative and General Expenses are much lower than last yeaz. An impact is the receipt of $24,000 in reimbursements of rebates from GRE in November. Net Income is positive again this month, although decreased from last year by $28,000. The yeaz-to-date Net Income is over the budgeted amount for the year. Unfortunately, that doesn't mean we will end the year above budget, because December is typically a "loss" month. Targeted budget net income numbers still differ by approximately $250,000, but our cash position for end of year projections are in line. Again, the Cash Flow Detail report shows this very well, Capital project reductions (either postponing or reduced project expenses) have been the biggest contributors here. Water P&L Water Sales are also up this month compared to last yeaz, by a very small margin. The budgeted amount of $2,000,000 has already been met and so December will be gravy. Other Revenue is still down, in total, from the prior year. The Investment Income is increased over last yeaz due to the bond refunding escrow accounts earning interest, but Connection Fees continue to be down, especially from November of last year. Expenses are in line with projections and under budget, in total, for the year. Interest Expense is higher this year as a result of the bond refunding. We have a net loss this month (typical for this time of year) that is slightly higher than last year. Net Income year-to-date is very slightly up from last year, by $1,789. We anticipate ending the year about $100,000 ahead of budget and being able to contribute about $200,000 more to reserves. 1