MANAGER'S REPORT
06/12/24
Budget Position Report
Actual cash in the door was $116,187.06. Actual cash out the door (Operational Expenses + Capital Expenditures) for the 401 General Maintenance Fund was $77,040.29. Operational revenues exceeded expenditures $39,146.77.
In addition, we made the May USDA payment from the 404 Debt Service Fund. I have included a Reconciled Budget Position Report for that fund.
I have ceased the hi-diddle-diddle of transferring the payment from the 404 to the 401 and then recording the payment in the 401. I just record the payment directly from the 404. The county does the transfer because they keep their balance of the 404 fund at zero. We contribute to the fund monthly and draw the payment from that.
We are a bit ahead and I am considering transferring some of that money back into the 401 fund. I am hesitating because in making some of those kinds of adjustments in the past we have ended up with funds with negative balances. It doesn’t impact the overall cash position, but it looks messy.
We contributed $44,419.42 to reserves:
Out to Capital Replacement Fund: $ 14,753.00
Out to Major Repair Fund: $ 25,466.42
Out to USDA Loan Reserve: $ 4,200.00
Our contributions to the Major Repair Reserve are considerably above the budget. We projected $132,617 to Major Reserve for the year. So far we have contributed $437,856. Of course, the $132,617 is the projected net contribution, minus expenses for major repairs during the year. We already have about an $88,000 repair bill coming for the Well #5 pump replacement. We have two major main repairs so far, as well. I haven’t seen the bills for those yet.
One item I might point out is the revenue from late fees. That income has been steadily decreasing. It can be inferred that the number of past due bills, and the extent that they are past due, is decreasing. I attribute a lot of that to Xpress Bill Pay, as well as resolving one of the long term high balance accounts.
A transfer of $3,800.00 will be going into the General Facilities Fund.
I have included a Reconciled Budget Position Report for all funds, including beginning balances, for your information.
Treasurer’s Report: Current EOY 2023
Fund Balances:
Regular Maintenance Fund: $ 27,209.79 $ 81,720.29
Capital Replacement Fund: $ 263,634.45 $205,953.45
Major Repair Reserve: $1,072,720.33 $666,893.55
General Facilities Fund: $ 165,846.93 $162,586.55
Total Funds Available: $1,529,411.50 $1,117,154.25
Monthly Utility Totals Report.
June billing (Section 2) is $97,590.89.
Claims Request
See enclosed Claims Request Form. $118,432.72. The big contributor is the Pump #5 replacement. Though the radios in the trucks contributed. That come in a bit above the initial estimate.
Water Bill Appeal
None of which I am aware.
Receipt Register
Receipts for May according to the receipt register were $126,211.98. There will always be a difference between what is recorded in the Receipt Register and the actual cash receipts because the Receipt Register records credit card receipts that may, or may not, have cleared the bank.
IT Issues
We still are not quite sure we can run on one pump. We need to do some experimenting. There just hasn’t been time.
Capital Asset Management
We decided to issue a specification for a new service truck. I have not had the time to develop a detailed specification.
Request for Public Information
We have gathered the data and sent a letter to the person requesting the information regarding the reimbursement. Once we have received the reimbursement we will deliver the information.
Payroll Report
In your packets. There was lots of over time earned in May due to having to run Well #6 manually.
Isolation Valves
The as-built project is underway.
Cross Connection Control
The transition from the old application to the new one is underway. Ken and Dali have done a tremendous amount of work in catching up devices and testing.
Production Data
See the report. It is too early to make predictions.
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.
GENERATOR INVESTIGATION
I will start looking at generators once I have some information regarding sizing from MB Electric.
WATER SYSTEM PLAN
It is very close. I had hoped it would be submitted by now.
EMERGENCY RESPONSE PLAN
Certification is due to EPA at the end of June. It is on track.
GHC TRANSIT
No news in March. This project may drag on for some few years.
REYNVAAN EXTENSION
The signed engineering contract has been forwarded to Northwest Water Systems, Inc. The project is in their queue.
SHOP FENCE
No action until Spring. We will be moving on this soon.
ACCESS ROADS
Both the North Bank and the Clemons Reservoir access road projects have been deferred. We may examine later in the year.
AS-BUILTS UPDATE
There is a new base map available. I have not had time to review it.
ASHLEY & KAYLA
Deferred. Leaks will be repaired as found. The will no longer show in Active Projects.
GENERATOR TRANSFER SWITCH
The generator transfer switch has been installed. At this writing, there has been a bit of a glitch. The L&I inspector did not like the relationship of the switch to the platform.
We have a solution. It should be done by the time of the meeting.
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
I am making good progress on this project. At this stage it is primarily data collection and entry. So far, all the data we need is in district files. This project has consumed a good deal of my time.
DOLLAR GENERAL
Service connection is complete. This will be dropped from Active Projects.
CAMERAS
It has become apparent that we need additional surveillance cameras in the critical areas. I have contacted MB Electric for a proposal.
I have a proposal, but am slow-walking it. We have some other substantial expenses ahead of the cameras.
ELECTRONIC LOCKS
First phase is completed.
We will work with these for awhile before I propose a second phase. So far I am very pleased.
One area of concern is access when one of the key holders is not available. There may be an instance when a commissioner needs access.
The vendor suggested keys for the commissioners. I don’t think that is practical. I am researching an outside lock box large enough to hold one of the electronic keys.
Next steps may be padlocks on the Well Site gate, the Reynvaan Booster Station Gate, and the shop site gates. The padlocks we use are pretty basic and can be defeated with a basic bolt cutter. They need to be more robust.
I am not concerned about a terrorist incident. I think our size makes us unattractive to anything sophisticated. My main concern is vandalism and theft.
VAC-TRAILER
Due to the projected cost, this will have to be deferred.
MOBILE RADIOS
All four truck now have radios, in addition to the base station. This is working out well.
REPLACEMENT SERVICE TRUCK
See comments under Capital Asset Management.
WELL #5 REPAIR
The new pump is installed. Fortunately, American Pump considered a direct replacement more cost effective than trying to troubleshoot and repair the old pump on site.
One bowl on the old pump was cracked completely through. This casts the theory that the damage was caused by deadheading the pump into doubt. American Pump will be disassembling the old pump to see if the problem can be identified.
Another possibility is that a piece of debris got into the pump.
Hydrant Maintenance
No action in March.
Leak Repairs
We had two main breaks two days apart. One on Aberdeen Lake Road and another on that problem line on Hill Road south of Central Park Drive.
Rate Study
I have done considerable updating for the purposes of the Water System Plan. Sure wish my crystal ball were not so cloudy.
An assumed 5% inflation rate, which is pretty conservative for the range of products and services we use, really skates up the costs.
New Regulations
None
Newsletter
The newsletter is on track to go out before the end of the month.
Personnel
Succession
Manager
Commissioners
The job announcement for GM has been posted with WASWD and ERWOW. Those are the sites a qualified candidate will be checking. So far, no response.
We now have three folks interested in serving as commissioner with another possible. This is a great community.
Maintenance Activity:
See enclosed report.
Contractor Repairs/Assistance
Dollar General
Hill Road Main Break
Aberdeen Lake Road Main Break
Shop Organization
The crew is doing a good job of keeping up with the shop.
Training/Certifications
Kenny and I are current.
Mick has completed the WDM2 prep class and is scheduling the test.
Safety
We have a safety meeting every morning.
Vehicles
Vehicle #1: 2015 HD2500 Service Truck. See comments above under Capital Asset Management.
Vehicle #2: 2015 ½ Ton Pickup Truck: No Issues
Vehicle #3: 2019 ½ Ton Pickup Truck: No issues
Vehicle #4: 2008 HD3500 Service Truck: No Issues
Web Site
At this writing I have some catching up to do. Hopefully that will be done by the time you read this.
New Connections
New connection on River Road.
Long Distance Service Laterals
No new issues pending.
Respectfully Submitted:
Reg Hearn
General Manager