ERMUSR FINANCIALS 01-09-2007 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE Electric P&L This month's electricity sales are from the October usage that was billed in November. October was much colder this year than the prior year and that had an impact on revenues. However, new commercial accounts coming on line has impacted revenue even more. Commercial usage is up almost 10%. Interest income was higher due to a large CD maturing this year. Landfill revenue is higher with the additional 4th engine. Connect fees are down for the month and year to date, but still above budget. These fees are very inconsistent from year to year and difficult to predict. Miscellaneous Revenue has $9,280 in street lights that were paid for the Vandenberg addition($1,200) and the Highland Road project($7,080.) Purchased power is higher than the previous year, in direct relation to the sales being higher. Operating and maintenance is up $7,000 with the largest factors being the addition of staff ($2,000), gas costs doubling ($700), and oil costs quadrupling($2,000), as well as tools purchased ($1,000.) The Landfill expenses are higher than the prior year with the addition of the 4th engine. Maintenance expense is down because the overhead maintenance decreased by $8,000 and the underground maintenance remained the same. Customer account expense is down because write-offs of approximately $27,000 were done last November and we are doing those quarterly this year. Administrative and General expenses are down $40,000 di!e to some out of the ordinary occurrences last year. We had$2,500 in legal fees and $14,000 in consulting fees related to the Target Data Center project, $11,000 in audit investigation fees, and $15,000 in CIP expenses for the energy house project. Water P&L This month's water sales are from the October usage that was billed in November. Revenues for water consumption were again higher this year as compared to last year,but this is largely due to the rate increases since there was not additional irrigating with the colder weather. When looking at the revenues year to date, we are doing much better than anticipated. Revenues for water were projected to be significantly higher than the previous year due to higher rates and a modest usage increase. We have surpassed the usage projections—an early warm spring, and a hot July contributed significantly to that. Connection Fees were higher as well this month, still only slightly higher than the previous year to date total. They are significantly over budget,however, given those fees are budgeted very conservatively. The miscellaneous revenue amount this month is from an invoice to the city for reimbursement of the trunk main in Eagles Marsh. Earlier this year we also had a significant miscellaneous revenue amount resulting from restitution funds received. Production Expense is$5,600 less than the prior year. This difference from last year was some work done at the Freeport tower on the SCADA system, and some work done at the Hillside tower on the sidewalks and a pad for the generator. Distribution Expense is increased$8,890 over last year and $7,059 of this is from the Line Ave street patch for a watermain repair.