Quarterly Financial Report

Third Quarter of FY 2021-2022

Water / Wastewater Utility Fund

Current Financial Condition

The Water/Wastewater Utility Fund third quarter financial report reflects an undesignated working capital balance of $12.5 million, which represents approximately 4.5 months of Water/Wastewater Utility Fund 2022 budgeted operating expense ($4.1 million in excess reserve – above the 3-month minimum working capital reserve policy). The projected ending working capital balance is 27 percent or $2.6 million higher than the amended year-end working capital balance of $9.9 million.


At the end of the third quarter, expenses are exceeding revenues by $2.3 million, due to the principal and interest debt service payment made in December 2021 and the budget amendment for the North Heights Phase 7 project transfer to construction.

Water Structures


Water / Wastewater Utility Fund - Revenues vs Expenses


  • Charges for Services are projected to come in over budget primarily due to sewer sales.
  • Other Financing Sources are coming in over budget due to the refunding of revenue bonds in October 2021. This is offset in expenses.
  • Interest income is projected to come in over budget due to a rebound in interest rates in the second quarter of FY 2022.

  • Personnel Costs are projected to come in under budget due to vacancies.
  • Supplies are projected to come in over budget due to fuel.
  • Maintenance is projected to come in under budget due to various maintenance line items.
  • Contractual Services are projected to come in over budget to the net effect of lights & power and streep sweeping coming in under budget and sludge disposal fees coming in over budget.
  • Other Charges are projected to come in under budget due to education development.
  • Interdepartmental is projected to come in over budget due to vehicle and equipment repair charges.
  • Transfers are projected to come in under budget due to the postponement of the generator buyout and Regional Wastewater Plant Clarifier project.
  • Debt Service is projected to come in over budget due to the refunding of revenue bonds in October 2021. This is offset in revenues.
  • Capital Outlay is projected to come in under budget due to the mains & hydrants and other structures line items.
  • Charges for Services are coming in under budget due to water sales.
  • Other Financing Sources is coming in over budget due to the refunding of revenue bonds in October 2021. This is offset in expenses.
  • Interest income is coming in under budget due to interest rates rising more slowly than anticipated. Rates have since rebounded in the second quarter of FY 2022.
  • Miscellaneous is coming in under budget due to auction sales of used equipment.

  • Personnel Costs are coming in under budget due to vacancies.
  • Supplies are coming in over budget due to chemicals.
  • Maintenance is coming in under budget due to the net effect of machinery, meter box, and lift station maintenance coming in over budget and mains & hydrants and office equipment maintenance coming in under budget.
  • Contractual Services are coming in under budget primarily due to the net effect of street sweeping, lights & power, and professional services coming in under budget and sludge disposal fees coming in over budget.
  • Other Charges are coming in under budget due to education development, subscription, advertisting, and public relations line items.
  • Interdepartmental is coming in over budget due to annual insurance charges being posted in the first quarter.
  • Transfers are coming in under budget due to the postponement of the generator buyout and Regional Wastewater Plant Clarifier project.
  • Debt Service is coming in over budget due to the refunding of revenue bonds in October 2021. This is offset in revenues.
  • Capital Outlay is coming in under budget due to the timing of expenditures. These purchases are made irregularly throughout the fiscal year.

Budget Amendments

As of the third quarter of FY 2021-22, the Water/Wastewater Utility Fund has been amended in the amount of $1.2 million for North Heights Phase 7 and $2.3 million for the FY 2020-21 carryover encumbrances (these encumbrances were not included in this financial report since the funding for the FY 2020-21 encumbrances came from prior year reserved working capital balance of $2.3 million).



As of the second quarter of FY 2022, the Water / Wasterwater Utility Fund had 20 vacancies out of 95 approved full-time positions.