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5.2 ERMUSR 03-11-2025 UTILITIES COMMISSION MEETING TO:FROM: ERMU Commission Melissa Karpinski –Finance Manager MEETING DATE: AGENDA ITEM NUMBER: March11, 2025 5.2 SUBJECT: Financial Report – January 2025 ACTION REQUESTED: Receive the January 2025Financial Report DISCUSSION: Please note that these are the preliminary unaudited financial statements. Electric January year to date (YTD) electric kWh sales are up 21% from the prior year. For further breakdown: Residential usage is up 33% Small Commercial usage is up 27% Large Commercial usage is up 13% For January 2025, the Electric Department overall is ahead of prior YTD and favorable to budget YTD. Additional variance analysis can be found on the Summary Electric Statement of Revenues, Expenses and Changes in Net Position attachment. Water January YTD gallons of water sold are up 25% from the prior year. For further breakdown: Residential use is up 25% Commercial use is up 25% For January 2025, the Water Department overall is behind prior YTD but favorable to budget YTD. Additional variance analysis can be found on the Summary Water Statement of Revenues, Expenses and Changes in Net Position attachment. ATTACHMENTS: Balance Sheet 1.2025 Electric Balance Sheet 1.2025 Water Balance Sheet 1.2025 Summary Electric Statement of Revenues, Expenses and Changes in Net Position 1.2025 Summary Water Statement of Revenues, Expenses and Changes in Net Position 1.2025 Graphs Prior Year and YTD 2025 Detailed Electric Statement of Revenues, Expenses and Changes in Net Position 1.2025 ______________________________________________________________________________ Page 1 of 2 110 Detailed Water Statement of Revenues, Expenses and Changes in Net Position 1.2025 Budget vs Actual Graphs – Combined Electric and Water 1.2025 ______________________________________________________________________________ Page 2 of 2 111 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA COMBINED BALANCE SHEET FOR PERIOD ENDING JANUARY 2025 ELECTRICWATER ASSETS CURRENT ASSETS CASH3,785,3355,589,227 ACCOUNTS RECEIVABLE3,388,1635,340,852 INVENTORIES1,802,51954,597 PREPAID ITEMS287,61452,331 CONSTRUCTION IN PROGRESS449,00865,435 TOTAL CURRENT ASSETS9,712,64011,102,441 RESTRICTED ASSETS BOND RESERVE FUND1,779,0160 EMERGENCY RESERVE FUND7,422,2814,234,011 UNRESTRICTED RESERVE FUND00 TOTAL RESTRICTED ASSETS9,201,2974,234,011 FIXED ASSETS PRODUCTION795,92017,177,471 LFG PROJECT00 TRANSMISSION2,305,0240 DISTRIBUTION54,511,92730,835,173 GENERAL25,418,5101,548,813 FIXED ASSETS (COST)83,031,38149,561,458 LESS ACCUMULATED DEPRECIATION(36,982,070)(24,026,289) TOTAL FIXED ASSETS, NET46,049,31025,535,168 INTANGIBLE ASSETS POWER AGENCY MEMBERSHIP BUY-IN21,546,2120 LOSS OF REVENUE INTANGIBLE7,169,4120 LESS ACCUMULATED AMORTIZATION(4,230,372)0 TOTAL INTANGIBLE ASSETS, NET24,485,2520 OTHER ASSETS AND DEFERRED OUTFLOWS690,058126,311 90,138,55640,997,931 TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE5,247,488361,411 SALARIES AND BENEFITS PAYABLE1,119,925156,339 DUE TO CITY818,77495,020 DUE TO OTHER FUNDS00 NOTES PAYABLE-CURRENT PORTION00 BONDS PAYABLE-CURRENT PORTION480,00065,000 UNEARNED REVENUE17,710496,471 TOTAL CURRENT LIABILITIES7,683,8971,174,242 LONG TERM LIABILITIES OPEB LIABILITY00 LFG PROJECT00 DUE TO COUNTY00 DUE TO CITY00 BONDS PAYABLE, LESS CURRENT PORTION27,205,4111,489,740 PENSION LIABILITIES2,720,477500,450 TOTAL LONG TERM LIABILITIES29,925,8881,990,190 37,609,7853,164,432 TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES836,8134,937,984 FUND EQUITY CAPITAL ACCOUNT CONST COST1,779,0160 CONTRIBUTED CAPITAL00 RETAINED EARNINGS49,349,37033,024,979 NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)563,572(129,464) TOTAL FUND EQUITY51,691,95832,895,515 90,138,55640,997,931 TOTAL LIABILITIES & FUND EQUITY 112 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA ELECTRIC BALANCE SHEET Current Month Change from January 31, 2025December 31, 2024 ASSETS CURRENT ASSETS CASH3,785,3355,621,609(1,836,274) ACCOUNTS RECEIVABLE3,388,1632,164,6731,223,490 INVENTORIES1,802,5191,637,838164,681 PREPAID ITEMS287,614252,21735,398 CONSTRUCTION IN PROGRESS449,008323,516125,492 TOTAL CURRENT ASSETS9,712,6409,999,853(287,213) RESTRICTED ASSETS BOND RESERVE FUND1,779,0161,779,0160 EMERGENCY RESERVE FUND7,422,2817,393,33228,949 TOTAL RESTRICTED ASSETS9,201,2979,172,34828,949 FIXED ASSETS PRODUCTION795,920795,9200 TRANSMISSION2,305,0242,305,0240 DISTRIBUTION54,511,92754,484,54027,387 GENERAL25,418,51025,401,30517,206 FIXED ASSETS (COST)83,031,38182,986,78844,593 LESS ACCUMULATED DEPRECIATION(36,982,070)(36,782,599)(199,471) TOTAL FIXED ASSETS, NET46,049,31046,204,189(154,879) INTANGIBLE ASSETS POWER AGENCY MEMBERSHIP BUY-IN21,546,21221,546,2120 LOSS OF REVENUE INTANGIBLE7,169,4127,169,4120 LESS ACCUMULATED AMORTIZATION(4,230,372)(4,174,694)(55,678) TOTAL INTANGIBLE ASSETS, NET24,485,25224,540,930(55,678) OTHER ASSETS AND DEFERRED OUTFLOWS690,058690,0580 90,138,55690,607,378(468,821) TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE5,247,4885,392,384(144,896) SALARIES AND BENEFITS PAYABLE1,119,9251,179,875(59,950) DUE TO CITY818,7741,144,737(325,963) BONDS PAYABLE-CURRENT PORTION480,000990,000(510,000) UNEARNED REVENUE17,7104,30513,405 TOTAL CURRENT LIABILITIES7,683,8978,711,301(1,027,404) LONG TERM LIABILITIES BONDS PAYABLE, LESS CURRENT PORTION27,205,41127,210,400(4,989) PENSION LIABILITIES2,720,4772,720,4770 TOTAL LONG TERM LIABILITIES29,925,88829,930,877(4,989) 37,609,78538,642,178(1,032,393) TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES836,813836,8130 FUND EQUITY CAPITAL ACCOUNT CONST COST1,779,0161,779,0160 RETAINED EARNINGS49,349,37046,802,2172,547,153 NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)563,5722,547,154(1,983,582) TOTAL FUND EQUITY51,691,95851,128,386563,571 90,138,55690,607,378(468,822) TOTAL LIABILITIES & FUND EQUITY 113 ELK RIVER MUNICIPAL UTILITIES ELK RIVER, MINNESOTA WATER BALANCE SHEET Current Month Change from January 31, 2025December 31, 2024 ASSETS CURRENT ASSETS CASH5,589,2275,734,416(145,189) ACCOUNTS RECEIVABLE5,340,8525,457,052(116,201) INVENTORIES54,59756,846(2,249) PREPAID ITEMS52,33156,336(4,005) CONSTRUCTION IN PROGRESS65,4352,48262,953 TOTAL CURRENT ASSETS11,102,44111,307,132(204,691) RESTRICTED ASSETS EMERGENCY RESERVE FUND4,234,0114,226,7747,237 TOTAL RESTRICTED ASSETS4,234,0114,226,7747,237 FIXED ASSETS PRODUCTION17,177,47117,177,4710 DISTRIBUTION30,835,17330,835,1730 GENERAL1,548,8131,548,8130 FIXED ASSETS (COST)49,561,45849,561,4580 LESS ACCUMULATED DEPRECIATION(24,026,289)(23,910,708)(115,582) TOTAL FIXED ASSETS, NET25,535,16825,650,750(115,582) INTANGIBLE ASSETS OTHER ASSETS AND DEFERRED OUTFLOWS126,311126,3110 40,997,93141,310,967(313,035) TOTAL ASSETS LIABILITIES AND FUND EQUITY CURRENT LIABILITIES ACCOUNTS PAYABLE361,411422,911(61,499) SALARIES AND BENEFITS PAYABLE156,339166,375(10,036) DUE TO CITY95,020243,473(148,453) BONDS PAYABLE-CURRENT PORTION65,00065,0000 UNEARNED REVENUE496,471459,50036,971 TOTAL CURRENT LIABILITIES1,174,2421,357,259(183,017) LONG TERM LIABILITIES BONDS PAYABLE, LESS CURRENT PORTION1,489,7401,490,295(554) PENSION LIABILITIES500,450500,4500 TOTAL LONG TERM LIABILITIES1,990,1901,990,745(554) 3,164,4323,348,004(183,571) TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES4,937,9844,937,9840 FUND EQUITY RETAINED EARNINGS33,024,97933,120,013(95,034) NET INCOME (LOSS) (THROUGH PREVIOUS MONTH)(129,464)(95,034)(34,430) TOTAL FUND EQUITY32,895,51533,024,979(129,464) 40,997,93141,310,967(313,036) TOTAL LIABILITIES & FUND EQUITY 114 Item Variance Var% 2024 v. 2025 Actual 00 1981 (465)(10) YTD VARIANCE 400 2024 400 2024 JANUARYYTD BUDGET ANNUAL Bud Var% 2025 YTD 004,80000735,06966,41266,412(3,154)(5) 1161261,00021,66821,6683602285,00020,14520,1453,96520 (881)(17)482,4004,8674,867 115 400 2025YTD 2025 YTDBudget BUDGETVariance ELK RIVER, MINNESOTA ELK RIVER MUNICIPAL UTILITIES FOR PERIOD ENDING JANUARY 2025 400 2025 400 3,1643,1646,333(3,169)(50)76,0005,5595,559(2,395)(43)4,4024,4025,283 22,35922,35918,3424,01722231,86316,51616,5165,8433527,08727,08721,2255,86228281,98719,16019,1607,9274121,86621,86621,75026,20726,20729,167(2,959)(10)350,00047,24547,245(21,038)(45)24,11024,11023,7503 2,53432,53412,50020,034160150,00091,38591,385(58,851)(64)(3)29,98729,98740,417(10,430)(26)341,00027,46727,4672,520948,60148,60143,4585,14312521,50043,59443,5945,0071163,25863,25863,25835,12535,12539, 167(4,041)(10)470,00033,15333,1531,973644,31244,31253,317(9,005)(17)639,80032,28032,28012,0323719,83019,83022,083(2,253)(10)265,00018,82118,8211,0095 374,443374,443290,56683,877294,073,730271,702271,702102,74138(2)193,667193,66778,125115,542148972,50079,90679,906113,761142(4)276,518276,518143,542132,976931,757,500238,682238,68237,83716202,463202,4 63222,708(20,245)(9)2,144,500209,197209,197(6,734)(3)287,650287,650278,2969,35433,339,552274,095274,09513,5555519,700519,700535,862(16,162)(3)4,783,849467,515467,51552,18511136,320136,320118,83417,48 7151,643,429112,061112,06124,25922156,150156,150140,91715,233111,908,429130,883130,88325,26819563,572563,572(113,363)676,9345971,654,881(161,833)(161,833)725,404448 STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 3,390,4093,390,4092,970,848419,5601441,085,7282,784,0592,784,059606,35022(1)3,836,5643,836,5643,323,131513,4331545,939,1083,113,5063,113,506723,058234,113,0824,113,0823,466,673646,4091947,696,6083,35 2,1873,352,187760,895232,154,6972,154,6972,151,0193,678030,599,6282,218,9972,218,997(64,300)(3)3,393,3603,393,3603,439,119(45,758)(1)44,133,2983,383,1373,383,13710,2230 2025 JANUARYYTD Variance of +/- $25,000 and +/- 15%PYTD budget variance is mainly due to increased usage.Budget and PYTD budget variance is mainly due to increased usage.PYTD variance due to large a large connection agreement in January 2024. m Ite(1)(2)(3)(4)Budget and PTYD variance is mainly due to Contributions from Customers having a large SOWs for transformer for additional service and/or upgrade. Electric Other Electric Sales Total Operating RevenueOther Operating Revenue Customer Penalties Connection Fees Misc Revenue Total Other Revenue Total RevenueExpenses Purchased Power Operating & Mtce Expense Transmission Expense Distribution Expense Maintenance Expense Depreciation & Amortization Interest Expense Other Operating Expense Customer Accounts Expense Administrative Expense General Expense Total Expenses(before Operating Transfers)Operating Transfer Operating Transfer/Other Funds Utilities & Labor Donated Total Operating Transfer Net Income Profit(Loss) RevenueOperating Revenue Elk River Otsego Rural Big Lake Dayton Public St & Hwy Lighting Interest/Dividend Income Item Variance (1)(2)(3)(4) Var% 2024 v. 2025 Actual 58 (38)(31) 29229 (853)(7)(200)(7) YTD VARIANCE 61 994121 2024 61 994121 2024 0000000000 BUDGET ANNUAL Bud Var% 2025 YTD 0031,4662,9122,912 380135,00012,14212,142203260,750 (15)(1)426,100 21701,199,700103,041103,04118,42118 (148)(2)105,2507,1337,1331,48921(955)(94)12,250(167)(100)2,00(167)(100)2,00 116 63 167167 2025YTD 2025 YTDBudget BUDGETVariance ELK RIVER, MINNESOTA ELK RIVER MUNICIPAL UTILITIES 00 83661,021 FOR PERIOD ENDING JANUARY 2025 2025 00 8366 7,8987,89812,583(4,685)(37)151,00013,83913,839(5,941)(43)4,5834,5832,3332,2499628,0002,3672,3672,215941,2861,2861,3002,7122,7122,7128,6238,6238,771 31,68231,68226,5425,14119318,50089,93889,938(58,256)(65)45,44945,44942,7582,6916923,600107,138107,138(61,689)(58)11,28811,28811,25054,13854,13856,013(1,874)(3)672,15047,38747,3876,7521426,60726,60762 ,130(35,523)(57)459,66015,72715,72710,88169 165,649165,649139,41226,237193,143,314135,638135,63830,01122165,649165,649139,41226,237193,143,314135,638135,63830,01122211,098211,098182,17128,927164,066,914242,776242,776(31,679)(13)115,582115,5821 10,4895,09351,325,866100,743100,74314,83915121,462121,462121,245340,562340,562373,693(33,131)(9)4,002,092289,267289,26751,29518 (129,464)(129,464)(191,689)62,2253262,822(46,490)(46,490)(82,974)(178) STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 2025 JANUARYYTDJANUARYYTD Variance of +/- $15,000 and +/- 15%Budget and PYTD variance is due to increased usage.Budget variance is mainly due to timing of water meter permit.PYTD variance is due to increased consulting fees and sick pay (accrual change). m Ite(1)(2)PYTD variance due to a couple of large connection agreements in 2024.(3)(4) WaterRevenueOperating Revenue Water Sales Total Operating RevenueOther Operating Revenue Interest/Dividend Income Customer Penalties Connection Fees Misc Revenue Total Other Revenue Total RevenueExpenses Production Expense Pumping Expense Distribution Expense Depreciation & Amortization Interest Expense Other Operating Expense Customer Accounts Expense Administrative Expense General Expense Total Expenses(before Operating Transfers)Operating Transfer Utilities & Labor Donated Total Operating Transfer Net Income Profit(Loss) 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 20242025 Elk River Municipal Utilities Monthly Energy Purchases 40,000 35,000 30,000 25,000 20,000 Energy Purchases in MWH 15,000 Month 20242025 117 Elk River Municipal Utilities Monthly Total Electric Load 35,000 33,000 31,000 29,000 27,000 25,000 23,000 21,000 Electric Load in MWH 19,000 17,000 15,000 Month 20242025 Elk River Municipal Utilities Monthly Electric Sales $5,000,000 $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 20242025 118 Elk River Municipal Utilities Monthly Residential, Commercial & Industrial Loads 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 Loads in MWH 4,000 2,000 - Month 202 Residential Commercial 202 CommercialIndustrial 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 Residential Residential Commercial Commercial Industrial Industrial 119 Elk River Municipal Utilities Monthly Water Pumpage 140.0 120.0 100.0 80.0 60.0 40.0 Pumpage in Million Gal. 20.0 0.0 Month 20242025 Elk River Municipal Utilities Peak Day Pumpage 6.0 5.0 4.0 3.0 illion Gal. 2.0 Peak Day in M 1.0 0.0 Month 20242025 120 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 MG MG $ $ 121 122 123 124 125 126 127 128 129 130 131 132