In addition, operating revenues grew at a rate of 5.86 percent, from $9.66 million in 2009 to $10.23 million in 2010. Officials said the trend was due to rate increases that began taking effect in February.
The report also showed that operating expenses decreased 1.62 percent over the same time period, falling to $10.24 million at the end of the fiscal year. Long-term debt also declined at a rate of more than 18 percent, leaving WMU with about $26.46 million in debt at the end of the cycle.
WMU maintained a strong debt service ratio for the year and kept its beneficial A1 bond rating through Moody’s Investor Service, according to the report. The measure, which WMU has struggled with in the past, allows the utility to borrow money at favorable rates.
An additional memo also showed that WMU has remedied several concerns over internal control that were identified last year. The problems mostly stemmed from a lack of redundancy and verification procedures.
Sparks said the results added up to a general improvement in WMU’s finances.
“You are definitely in a stronger financial position as of June 30, 2010 than you were at June 30, 2009,” he told the WMU Commission.
WMU Manager Mike Flynn attributed the clean report to the work of Jennifer Sparks, director of accounting and finance, along with staff.
In other business,
— Engineering supervisor Duke Dryden was promoted to the position of director of engineering and operations. The position was vacated when Flynn was appointed as general manager.
— The commission accepted the Winchester Industrial Park Elevated Storage Tank Rehabilitation Project as complete. Funded by federal stimulus money through the Kentucky Infrastructure Authority, the $760,000 project was finished well below budget. Utility Service Company performed the work.
— The commission revised an ordinance related to system development charges. Under the changes, a seller of a property must notify a buyer in writing if charges to connect to water or wastewater systems have not been paid prior to the sell.
Contact Mike Wynn at mwynn@winchestersun.com.
