5.1 ERMUSR 09-14-2021��i
Elk River ,
Municipal Utilities UTILITIES COMMISSION MEETING
TO:
FROM:
ERMU Commission
Melissa Karpinski — Finance Manager
MEETING DATE:
AGENDA ITEM NUMBER:
September 14, 2021
5.1
SUBJECT:
Financial Report —July 2021
ACTION REQUESTED:
Receive the July 2021 Financial Report
DISCUSSION:
Please note that these are the preliminary unaudited financial statements.
Electric
July's electric kWh sales are down from the prior year, 3% (error in billing with adjustment done
in August). For further breakdown:
• Residential usage is up 2%
• Small Commercial usage is up 9%
• Large Commercial usage is down 9% (error in billing with adjustment done in August)
Electric Operating Revenues for July of $4,178,971 are more than prior year by 3% and in line
with budget. July YTD is ahead of prior year by 5% and favorable to budget by 1%. The prior YTD
variance is mainly due to Elk River Sales.
Other Revenues of $275,044 are more than prior year by 57% and favorable to budget by 60%.
Other Revenues YTD is ahead of prior year by 10% and favorable to budget by 22%.
Overall, Total Revenues of $4,454,016 are more than prior year by 5% and favorable to budget
by 2%. YTD is more than prior year by 5% and is favorable to budget by 3%.
Purchased Power of $3,110,114 is more than prior year by 12% an unfavorable to budget by
3%. YTD is more than prior year by 11% and is unfavorable to budget by 9%.
YTD Other Operating Expense of ($157,347) is due to relieving the OPEB liability ($208,274) due
to the change from group -based medical premiums to age -based medical premiums. With this
change ERMU no longer has an OPEB liability.
Administrative Expenses of $243,592 are less than prior year by 4% and favorable to budget by
14%. YTD costs are more than prior year by 2% but favorable to budget by 4%. July's Office
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Supplies account has a credit balance due to a reclass of iVUE server to an asset. The main
drivers of the prior YTD variance are Dues & Subscriptions — Fees (bonding expenses).
General Expenses of $56,907 are more than prior year by 75% and unfavorable to budget by
17%. YTD costs are more than prior year by 7% but favorable to budget by 37%.
Total expenses YTD are 8% more than prior year and are unfavorable to budget by 4%. The
main driver causing the prior YTD variance is Purchased Power.
For July 2021, the Electric Department has a Net Profit of $318,762 and YTD Net Profit of
$393,568. This is ahead of the budgeted monthly Net Profit of $282,792 but is less than prior
year monthly Net Profit of $477,470. YTD is behind the budgeted YTD Net Profit of $588,725
and is less than the prior YTD Net Profit of $929,562.
Water
July gallons of water sold are up 21% from the prior year. For further breakdown:
• Residential use is up 24%
• Commercial use is up 16%
Water Operating Revenues for July of $573,393 are ahead of prior year by 24% and favorable to
budget by 41%. YTD is ahead of prior year by 12% and favorable to budget by 28%.
Other Revenues of $99,692 are ahead of prior year by 120% and favorable to budget by 149%.
YTD is ahead of prior year by 50% and favorable to budget by 102%. The main driver of the YTD
variance to prior year and budget are Connection Fees.
Overall, Total Revenues of $673,085 are ahead of prior year by 32% and are ahead of prior YTD
by 20%. YTD Total Revenues are favorable to budget by 41%.
YTD Other Operating Expense of ($46,334) is due to relieving the Other Postemployment
Benefits (OPEB) liability ($44,525) due to the change from group -based medical premiums to
age -based medical premiums. With this change ERMU no longer has an OPEB liability.
YTD Administrative Expenses are more than prior year by 17% but favorable to budget by 3%.
The main driver of the prior YTD variance are Dues & Subscriptions — Fees (bonding expenses).
Total Expenses of $263,018 are more than prior year by 21% and more than prior YTD by 17%.
YTD is unfavorable to budget by 2%. The main driver of the prior YTD variance is from Mtce of
Structures, which is due to the transfer of the Johnson Street water tower.
For July 2021, the Water Department has a Net Profit of $409,284 and YTD Net Profit of
$310,279. This is better than the budgeted monthly Net Profit of $203,074 and better than the
prior year monthly Net Profit of $292,134. YTD is significantly ahead of the budgeted YTD Net
Loss of ($275,265) and is ahead of the prior YTD Net Profit of $222,132.
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ATTACHMENTS:
• Combined Balance Sheet 07.2021
• Electric Balance Sheet 07.2021
• Water Balance Sheet 07.2021
• Summary Electric Statement of Revenues, Expenses and Changes in Net Position
07.2021
• Summary Water Statement of Revenues, Expenses and Changes in Net Position 07.2021
• Graphs Prior Year and YTD 2021
• Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 07.2021
• Detailed Water Statement of Revenues, Expenses and Changes in Net Position 07.2021
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