MANAGER'S REPORT
01/10/24
Budget Position Report
Operational revenues for December were $99,525.09. Operational expenses were $72,361.77. In addition, we spent $288.00 on Capital Projects. So revenues exceeded expenses by $26,875.32.
We contributed $26,875.32 to reserves:
Out to Capital Replacement Fund: $ 6,711.00
Out to Major Repair Fund: $ 15,964.32
Out to USDA Loan Reserve: $ 4,200.00
For the year, Operational revenues were $1,179,280.20, $69,550.20 over projected. Operational expenses were $763,130.43, $72,592.43 over budget.
Operational revenues exceeded operational expenses by $416,149.77. Other factors include Capital expenditures of $194,224.55, bringing total cash expenditures to $957,354.98; reimbursement from FEMA of $99,706.04, investment income of $10,032.78, and miscellaneous receipts of $798.99, bringing total cash receipts to $1,289,818.01. Total cash receipts exceed total cash expenditures by $332,463.03.
There are two Reconciled Budget Position Reports in your packet. One is for the General Maintenance Fund (401) only and does not include beginning balances in order to present the cash-in/cash-out situation. All transactions, in one way or another, pass through the 401 Fund and this report serves, fundamentally, as a revenue/expense report. The second report is the full budget position report for all funds and includes beginning balances.
I had to remind myself of the timing issues. The Receipt Register (see below) and the Reconciled Budget Position Report show different numbers because the Receipt Register reflects cash receipts for the month of December. The Budget Position Report shows receipts that were transferred to the county auditor, which is the cash received in November.
Treasurer’s Report:
Current EOY 2022
Fund Balances:
Regular Maintenance Fund: $ 81,720.29 $ 13,671.64
Capital Replacement Fund: $ 205,953.45 $145,746.29
Major Repair Reserve: $ 666,893.55 $423,030.14
General Facilities Fund: $ 162,586.96 $157,633.98
Total Funds Available: $1,117,154.25 $740,082.05
Monthly Utility Totals Report.
January billing (Section 1) is $114,311.40.
Claims Request
See enclosed Claims Request Form. This is another high one due to the completion of the power entrance platform at the pump house. That expense will be covered out of the Major Repair Reserve Fund.
Water Bill Appeal
None of which I am aware.
Receipt Register
Receipts for December, per the Receipt Register, were $90,802.50. That figure includes receipts that are refundable deposits, which do not belong to the district.
The transfer check to the County has to be handled somewhat differently since some claims, even now, are coming out of the checking account.
The check to the County Treasurer is derived from the cash receipts (according to the bank statement), minus any claims payments, which includes fees to Xpress Bill Pay and payment of the B&O taxes. Starting in January, payroll expenses will be deducted from the check to the County Treasurer, as well.
See comments in the section about the payroll responsibility transfer.
IT Issues
I am in contact with vendor recommended by SeattleTechs. However the search is not over. I keep getting the “sounds great, I will call you tomorrow” routine. My grandmother used to tell me that tomorrow never comes. It seems to be the case here.
Capital Asset Management
Nothing in December.
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in December.
However, our general approach is, if someone wants public information, we provide it. The only problem with that approach is that it leaves us open to outrageous requests.
Payroll Report
In your packets.
Payroll Responsibility Transfer
The December pay period is the last one to be handled by the county. Payroll is now our responsibility. We are in good shape with the exception of some tasks that couldn’t be addressed until after January 1st.
The mid-month draw will be our first actual payroll transaction.
Isolation Valves
A major break on Aberdeen Lake Road underscored the need to put organization of the district’s as-built information at top priority.
The proposed contract from NWS, Inc. is in your packets. See comments in the projects section.
Cross Connection Control
A great deal of progress has been made in updating our records and working with customers to get everyone into compliance.
Production Data
The Production Summary is in your packets. Note that the Daily Average is down. We used 69% of our water right.
I included a summary of water pumped vs. water sold. While it shows 24% unaccounted for water, flushing and fire district use have to be factored in to make a reasonable estimate of actual water loss.
It is difficult to get a close indication of water loss because of the split billing. After much pondering, it seems that recording from December to December comes closest to the actual number.
Active Projects
Several projects are in process, but seem to be going slowly as preliminary work is moving forward. There is a lot on my plate and the highest priority projects get first call on my attention.
WATER SYSTEM PLAN
This is moving forward.
GHC TRANSIT
No news in December. This project may drag on for some few years.
REYNVAAN EXTENSION
The signed engineering contract has been forwarded to Northwest Water Systems, Inc.
PAPE RETAIL CENTER
No news in December.
SHOP FENCE
I have talked to Frank Sherer, the deputy fire chief. We generally addressed the topic, but need to have a face to face meeting. That should happen sometime in January.
ACCESS ROADS
Both the North Bank and the Clemons Reservoir access road projects have been deferred.
HOLBROOK LANE/SCHRADER LANE MAIN BREAK
The check has arrived. I put a copy in your packets.
This project is officially completed. It will disappear from the list.
AS-BUILTS UPDATE
This project is underway. The first step is for NWS, Inc. to acquire whatever GIS information is in the county files. A request has been made to the county.
ASHLEY & KAYLA
Deferred. Leaks will be repaired as found.
POWER PANEL PLATFORM
The new platform is complete.
GENERATOR TRANSFER SWITCH
I have requested a proposal from Richie at MB Electric. No response in December.
ON-SITE CHLORINE GENERATION
In the last couple of months the cost of chlorine has jumped from $7.10/gallon to $10.40/gallon, a 45% increase.
It may be time to take a serious look at this project.
LEAD SERVICE LINE INVENTORY
No action in December
DOLLAR GENERAL
This project is moving along quite rapidly. Except they haven’t finalized the water connection yet. The location for the connection seems to be pretty well defined. But they haven’t paid any fees yet.
INDEFINITE DELIVERY
We received two bids for this contract, from Brumfield and Rognlin’s. Brumfield was the low bidder by a considerable margin. I have issued the required notifications.
OFFICE EXTERIOR LIGHTING
MB Electric has been contacted. No action beyond that in December.
CAMERAS
It has become apparent that we need additional surveillance cameras in the critical areas. I have contacted MB Electric for a proposal.
Hydrant Maintenance
No action in December.
Leak Repairs
See the “Contractor Assistance” paragraph and the Closed Work Order Report.
Rate Study
Up to date for the moment, though expenses are a moving target thanks to inflation.
New Regulations
Nothing new
Newsletter
It is on the streets. I haven’t received any feedback yet.
Personnel
No news in December
Maintenance Activity:
See enclosed report.
Contractor Repairs/Assistance
Assistance on a couple of leaks.
Shop Organization
The crew did a good deal of work into the shop lately and it looks very good.
Training/Certifications
Nothing new. I need to bear down on my CEU’s.
Safety
We have a mini safety meeting every morning.
Vehicles
Vehicle #1: 2015 HD2500 Service Truck. The service body for this truck needs serious attention. I am investigating the possibility of having it repaired, but I don’t hold out much hope. There is a lot of corrosion. It may well need replacement. There is a problem with the driver side door. Wire-Works is taking a look at that problem.
We haven’t had the chance to get the truck in to Wire-Works.
Vehicle #2: 2015 ½ Ton Pickup Truck: No Issues
Vehicle #3: 2019 ½ Ton Pickup Truck: Needs a backup alarm. Will go to Wire-Works.
Vehicle #4: 2008 HD3500 Service Truck: No Issues
Web Site
As noted above, the web site will require some professional assistance.
New Connections
None
Disaster Management Planning
I have received a proposal for the installation of electronic locks on our most vulnerable facilities. It is over $5,000, so I will need your approval to move forward.
A copy of the proposal is in your packets.
Another aspect under this heading is the ability to communicate when phones and the internet are down. I have fussed over that issue for some time. We had some inexpensive handheld radios in the emergency kit. As you recall, that kit grew legs. Which was the start of the investigation into more secure locks and key control. The disadvantage of the “consumer” handhelds is that they have very limited range and they were not integrated into our daily operations.
The middle of a crisis is not the time to be figuring out how the blessed radios are supposed to work.
Upon consideration, and discussions with other utilities, it is advisable to implement a communications protocol that does not include telephone land lines and/or cell phones into our routine methods. To that end, I am in discussions with a local provider of mobile radios.
We will have a demonstration and discussion about the available options in the next week or two. One of the options that has been discussed is a program that essentially leases the radios. For a very reasonable monthly fee, radios are installed, maintained and upgraded.
Long Distance Service Laterals
No new issues pending.
Respectfully Submitted:
Reg Hearn
General Manager