Water Authority Reports Record Revenue Amid Drought Conditions

The recent meeting of the water authority highlighted a significant financial performance for the month, with water sales exceeding budget expectations by approximately 10 million gallons. Daily averages reached 94 million gallons, surpassing the budgeted 83.5 million, resulting in a revenue of $9.7 million—$1.8 million above projections. The net income for the month stood at $6.4 million, exceeding budget expectations by $2.2 million, while year-to-date net income surpassed the budget by $5.7 million.

The authority attributed this financial success to increased water usage, likely driven by lower rainfall levels, which have seen a 13% decrease compared to the previous year. Capital spending on projects totaled $25 million, with a remaining commitment of $48 million in the annual capital improvement budget. Cash reserves for capital improvement projects reached $66 million by the end of June.

In operational updates, five active pipe projects are currently underway, alongside four facilities projects, with additional projects in the bidding and design phases. However, rising operating costs were noted, with costs per thousand gallons sold increasing from $204 to $215 over the past year.

The meeting also addressed variable costs, which were $370,000 over budget due to increased electricity usage. Interestingly, it was noted that purchasing electricity from the market proved to be more cost-effective than running facilities during June. Year-to-date variable costs were reported at $9.7 million, down from the projected $10.6 million.

Looking ahead, the authority is monitoring market trends, with gas prices remaining below budget forecasts. The meeting concluded with discussions on reserve capacity and load management, indicating that the authority is well-positioned to manage its resources effectively despite fluctuating market conditions.