Annual Meeting Program & Annual Report

Transcription

1 Your local water supplier must comply with regulations set forth by the Safe Drinking Water Act. This requires your utility to monitor and treat for almost 100 different parameters in the water delivered to your tap. As a result, drinking water is the most regulated and controlled substance you can ingest more than any food, drug or beverage. -American Water Works Association Annual Meeting Program & Annual Report

2 Directors, Staff Board of Directors: Front (l to r): Glen Gilbertson, VicePresident; Robert Wood, President; Randy Huot, Sec.Treas.; Pat Manning. Back: Randy Ronning; Vic Hendriks; Duane Holoch; Jim Schurdevin; Dave Reiff. Staff: Top (l to r): Greg Merrigan, Manager; Donna Henriksen, Office Manager; Tom Hollingsworth, Operations Supervisor; Leanne Brown, Accounting. Bottom: Operators Phil Iverson; Rob Ganschow and Andy Ganschow 2

3 Welcome! Welcome to the 2017 Clay Rural Water System Annual Meeting/Open House. This format gives you an opportunity to see your water system up close. This is the 38th annual meeting of the water system. The Clay Rural Water System provides water service to 2,357 locations in parts of five counties in southeast South Dakota. The sole purpose of the water system is to provide safe, quality drinking water to its members for domestic, farm and business use. Clay RWS is a member-owned, non-profit corporation incorporated in July, The water system was financed and constructed from primarily with member connection fees and loans and grants from the Farmers Home Administration. It became fully operational in The original construction cost of the system was $5.8 million. Service Area Service to the member population base of 5,700 is provided from two water treatment plants located in central Clay County and southern Union counties. Water is distributed from the treatment plants through a network of 1,200 miles of pipeline, six storage reservoirs with a capacity of 1,040,000 gallons, and five booster stations. Clay RWS is governed by a nine-member Board of Directors, elected by the membership from three voting districts. Our Mission: The Mission of the Clay Rural Water System is to provide high quality water service to the members of the corporation at the lowest possible cost, consistent with sound business practice. 3

4 From the President and Manager On behalf of the Board of Directors and Staff, we would like to welcome you to the 2017 Annual Membership Meeting. This is an opportunity to review the performance of your water system during the past year and to see its workings first-hand Financial Performance: In 2016, the financial performance of the water system allowed us to meet all of our financial requirements. Total operating revenue was $2,036,985, which was an increase over Total expenses including depreciation of $829,153 was $2, , which resulted in a net operating loss of $267,515. The system does not fully cover depreciation costs but does set aside money each year to maintain system assets. Total water sold in 2016 was 269,220,000 gallons which was an increase of 7.3% over ranks second all-time for water sales in gallons sold. The Board of Directors tracked the cost of service for our two service areas - Wakonda and South Union - more closely in 2016 and determined that the Wakonda area faced increased maintenance costs and the South Union area was running at a deficit. Therefore a rate increase for both service areas was approved for implementation in Operational Update: 2016 was a busy year for water system personnel. We added 38 new users which brought our year-end total to 2,357.We spent over $125,000 last year maintaining wells, treatment equipment and distribution facilities. Four of the systems six water storage reservoirs were drained and inspected and appear to be in good condition. The Westreville reservoir is scheduled for repainting in 2017 at a cost of $78,000. From an operational standpoint we find ourselves maintaining a 37 year old water system, while meeting continuing demand for service for new members. Employees worked 13,322 hours last year performing various operational and administrative functions. We thank the members of the water system for their continuing support for this, their water system. We take our role as the caretakers of the system very seriously. Last year we marked the 41st anniversary of our incorporation. Sincerely, Robert Wood, President, Board of Directors and Greg Merrigan, System Manager 4

5 Minutes of 2016 Annual Meeting MINUTES CLAY RURAL WATER SYSTEM, INC. ANNUAL MEETING/OPEN HOUSE APRIL 7, 2016 The Annual Meeting/Open House of the Clay Rural Water System was held at the Wakonda Water Plant on Thursday, April 7, 2016 from 4:00-7:00 p.m. 72 people registered at the door; 41 of them were members. The first 37 members each received $10. Members and Guests were presented with the 2015 Financial Statements and given tours of the Water Treatment Plant. Everyone present received a Commemorative campfire mug, pens and notepads. Five (5) $20 cash prizes were given to: Beverly Mincks of Burbank, Larry Pravecek of Beresford, Nick Merrigan of Vermillion, Mary Campbell of Akron, and Else Englund of Elk Point. Hot dogs, chips, cookies & drinks were served picnic style. ATTEST: Randy Huot, Secretary RECORDED BY: Donna Henriksen 5

6 Five Year Comparisons Total Plant Investment $25,870,562 $23,578,874 $19,324,587 Total Revenue $2,050,489 $1,774,521 $1,623,811 (Other Grants, Loan Forgiveness) $301,477 $767,764 Operating Costs $2,006,297 $1,745,479 $1,282,202 (Less Debt $347,298) (Includes Depreciation $829,153) Principal and Interest Payments $615,189 $460,143 $437,155 (Principal $267,891)(Interest $347,298) Amount Owed On Long-Term Debt $8,833,621 $8,564,720 $7,220,396 Average Number of Members 2,357 2,202 1,843 Total Gallons Sold 269,220, ,556, ,108,000 Miles of Pipeline 1,205 1, Cost of Production (Wak., Wyn.) $1.61/$1.50 $1.39/$1.15 $1.61 Average Farm Bill (Dollars/Gallons) $77.73/11,864 $72.78/11,083 $63.16/10,238 Average Residence Bill (Dollars/Gallons) $60.05/7,933 $53.29/6,032 $47.58/9,161 6

7 Financial Information 2016 Revenue - $2,036, Expenses - $2,318,005 7

8 Balance Sheet Assets (What We Own) 12/31/ /31/2015 Property, Plant, Equipment $25,870,562 $25,694,072 Less Accumulated Depreciation ($12,415,497) ($11,610,445) Total $13,455,065 $14,083,627 Cash $377,012 $361,714 Accounts Receivable $146,355 $138,260 Materials and Supplies $92,182 $90,356 Prepayments $6,895 $7,400 Restricted Funds $329,695 $256,956 Notes Receivable $73,717 $76,820 Other Deposits $0.00 $0.00 Total $1,025,856 $931,506 Total Assets $14,480,921 $15,015,133 Liabilities (What We Owe) Accounts Payable $48,881 $52,815 Construction Payable $0.00 $0.00 Accrued Leave Payable $34,371 $34,317 Customer Deposits and Prepaids $6,781 $6,556 Notes Payable $8,833,621 $9,102,237 Accrued Interest Payable $34,533 $35,591 Total Liabilities $8,958,187 $9,231,516 Net Assets $5,522,734 $5,783,617 Total Liabilities and Equity $14,480,921 $15,015,133 8

9 Income Statement Operating Revenue 12/31/ /31/2015 Water Sales $1,877,120 $1,844,199 Membership and Reconnect Fees $4,414 $4,551 Hookup Line Installation $103,563 $80,708 Interest and Dividends $13,648 $14,681 Misc Income $38,240 $26,437 Other Income $0 $3,576 Total Operating Revenue $2,036,985 $1,974,152 Operating Expenses Source of Supply $7,990 $25,405 Pumping $76,415 $61,349 Water Treatment - Operation and Maint. $111,153 $98,355 Water Treatment - Chemicals and Equip. $177,519 $185,333 Transmission and Distribution $195,523 $142,507 Customer Accounting and Collecting $30,278 $34,066 Director Per Diem and Expenses $31,230 $27,450 General Office Salaries $147,594 $151,771 Office Supplies and Expenses $50,820 $50,279 Outside Services Employed $24,551 $19,559 Insurance $32,141 $37,341 Employee Pension and Benefits $172,647 $167,056 Transportation $39,742 $37,275 Misc General Expenses $25,187 $35,324 O and M of General Property $55,589 $95,402 Interest on Long Term Debt $310,473 $318,723 Total Expenses $1,488,852 $1,487,195 Increase (Decrease) Before Depreciation $561,638 $486,957 Depreciation $829,153 $825,201 Increase (Decrease) in Unrestricted Net Assets $(267,515) $(338,244) 9

10 Who Uses Clay Rural Water? How Much Water Do They Use? How Much Do They Pay? 10

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12 Notes to Financial Statements: These printed statements are excerpts from the December 31, 2015 and 2016 audited financial statements prepared by the firm of Quam, Berglin and Post, PC, Elk Point, SD. The complete audit report is on file with the Clay Rural Water System, Inc., Wakonda, SD. Statement of Non-Discrimination: These facilities are operated in accordance with U.S. Dept. of Agriculture policy, which prohibits discrimination on the basis of race, color, sex, age, handicap, religion, or national origin. Any person who believes he or she has been discriminated against in any USDA related activity should write to: Under Secretary, Rural Development, Washington DC