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5.1 ERMUSR 02-08-2022Administrative Expenses of $312,172are morethanprior yearby 14% butfavorable to budget by 6%. YTD costsare more than prior year by 3% but favorable to budget by 6%. The main driverof the prior YTDvariance isDues &Subscriptions – Fees (bonding expenses). General Expenses of $57,974 are more than prior year by 33% and unfavorable to budget by 19%. YTD costs are less than prior year by 1% and favorable to budget by 32%. Total expenses YTD are 12% more than prior year and unfavorable to budget by 5%. The main driver causing the prior YTD variance is Purchased Power. For December 2021, the Electric Department has a Net Profit of $177,141 and YTD Net Profit of $1,675,889. This is better than the budgeted monthly Net Loss of ($197,047) and is more than prior year monthly Net Profit of $18,080. YTD is ahead of the budgeted YTD Net Profit of $1,351,548 but is less than the prior YTD Net Profit of $2,896,266. Water December gallons of water sold are up 23% from the prior year. For further breakdown: Residential use is up 22% Commercial use is up 24% Water Operating Revenues for December of $141,864 are more than prioryear by 17% and favorable to budget by 34%. YTDis aheadofprior year by17% andfavorable tobudgetby 33%. The main driver of prior YTD varianceis increased usage. Other Revenues of $511,593 are lessthan prior yearby 30% but favorable to budget by 1206%. YTD is less than prior year by 4% but favorable to budget by 186%. The main drivers of the YTD variance to prior year and budget are Connection Fees and Contributions from Developers. Overall, Total Revenues of $653,458 are less than prior year by 23% but are ahead of prior YTD by 9%. YTD Total Revenues are favorable to budget by 59%. YTD Other Operating Expense of ($44,475) is due to relieving the OPEB liability ($44,525) with 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 20% but favorable to budget by 2%. The main drivers of the prior YTD variance are Dues & Subscriptions – Fees (bonding expenses), Consulting Fees (bonding expenses) and Utility Share of Medical/Dental. Total Expenses of $242,668 are more than prior year by 33% and more than prior YTD by 14%. YTD is favorable to budget by 1%. The main drivers of the prior YTD variance are Administrative Expense and Mtce of Structures, which is due to the transfer of the Jackson Street water tower. ______________________________________________________________________________ Page 2 of 3 37 For December2021, the Water Department has a Net Profitof $410,789and YTD NetProfitof $1,346,641. This is better thanthe budgetedmonthly Net Loss of ($143,890) butless thanthe prior year monthly Net Profitof $667,057. YTD issignificantly aheadof the budgeted YTD Net Loss of ($314,972) andslightly less than the prior YTD Net Profit of $1,349,294. ATTACHMENTS: Combined Balance Sheet 12.2021 ElectricBalance Sheet 12.2021 Water Balance Sheet 12.2021 SummaryElectric Statement of Revenues, Expenses and Changes in Net Position 12.2021 Summary Water Statement of Revenues, Expenses and Changes in Net Position 12.2021 Graphs Prior Year and YTD 2022 Detailed ElectricStatement of Revenues, Expenses and Changes in Net Position 12.2021 Detailed Water Statement of Revenues, Expenses and Changes in Net Position 12.2021 ______________________________________________________________________________ Page 3 of 3 38 39 40 41 42 43 Elk River Municipal Utilities Monthly Electrical Demand 80.0 75.0 70.0 65.0 60.0 55.0 Demand in MW 50.0 45.0 40.0 35.0 Month 20212022 Elk River Municipal Utilities Monthly Energy Purchases 40,000 35,000 30,000 25,000 20,000 Energy Purchases in MWH 15,000 Month 20212022 44 Elk River Municipal Utilities Monthly Total Electric Load 40,000 35,000 30,000 25,000 Electric Load in MWH 20,000 15,000 Month 20212022 Elk River Municipal Utilities Monthly Electric Sales $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 Sales in Dollars $2,000,000 $1,500,000 $1,000,000 Month 20212022 45 Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Loads 25,000 20,000 15,000 10,000 Loads in MWH 5,000 - Month 2021 Residential2022 Residential2021 Commercial 2022 Commercial2021 Industrial2022 Industrial Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Sales $2,500,000 $2,000,000 $1,500,000 $1,000,000 Sales in Dollars $500,000 $0 Month 2021 Residential2022 Residential2021 Commercial 2022 Commercial2021 Industrial2022 Industrial 46 Elk River Municipal Utilities Monthly Water Pumpage 180.0 160.0 140.0 120.0 100.0 80.0 60.0 Pumpage in Million Gal. 40.0 20.0 0.0 Month 20212022 Elk River Municipal Utilities Peak Day Pumpage 7.0 6.0 5.0 4.0 illion Gal. 3.0 2.0 Peak Day in M 1.0 0.0 Month 20212022 47 Elk River Municipal Utilities Monthly Water Sales 180$600,000 160 $500,000 140 120$400,000 100 $300,000 80 Sales In Dollars 60$200,000 Sales in Million Gal. 40 $100,000 20 0$0 Month 2021 MG2022 MG2021 $2022 $ 48 49 50 51 52 53 54 55 56 57 58 UTILITIES COMMISSION MEETING TO:FROM: ERMU Commission Melissa Karpinski –Finance Manager MEETING DATE: AGENDA ITEM NUMBER: February 8, 2022 5.2 SUBJECT: 2021 Fourth Quarter Delinquent Items ACTION REQUESTED: Approve the 2021fourth quarter delinquent itemssubmitted. BACKGROUND: Fourth quarter delinquent items are presented for your review. We have previously reported on four different categories of delinquents as follows: Assessments are delays in collecting the money owed and is assessed to the th property taxes in the fall.Please note this number will only be presented in the 4 quarter. Collections amounts are those we send to the collection agency to try and collect after we have exhausted all our internal collection efforts. We receive 70% of amounts collected after the agency receives their split. Revenue Recapture (RR) is the program through the state where funds are collected from individuals’ tax refunds and remitted to us, with the balance (if any) remitted to the individual. It presents an opportunity to collect funds rather than splitting with a collection agency or having to write them off completely. There is a six-year limit for keeping items on RR and if uncollected at this time, amounts are removed and written off. Write Offs are amounts removed from the books with no further collection efforts being extended. DISCUSSION: I have for review recap comparisons with last year, identifying the categories and amounts for each quarter and the running totals. Regarding the year end totals: The amounts listed for assessments culminate in the fourth quarter and include items previously submitted to other collection services, and if not collected, are removed and assessed. The assessment amount for 2021 is $13,572.01. This increased compared to 2020 but given the current environment is reasonable. The amounts submitted only to Collection Agencies for 2021 is $0. (Please note that amounts submitted to Revenue Recapture were also submitted to Collection Agencies.) The amounts submitted to Revenue Recapture were more than the prior year. The2021 RR amount is $17,021.74. We have collected a total of $12,634.17 from RR in 2021. ______________________________________________________________________________ Page 1 of 2 59