2. Review of 2009 – 2010 Rates: How are we doing? 

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6.  What happened in 2009???  Only ½ year with new rates and to get LID customers set up in the system,  Customers who had a business, multi-family dwelling, or other classifications other than “Single Family Dwellings” cut down on consumption, by 15.6 million gallons, although this customer base grew by 50!  Fuel prices drove an increase in Operations. Personnel expenditures were artificially driven higher by the PERS relief, or on behalf payments made by the State of Alaska totaling $93,758. This $ was recorded also as Non-Operating Income.  There were 95 fewer customers than budgeted and appx. 20 million gallons less water used.

7. Review of 2009 – 2010 Rates: How are we doing? 

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10.  What happened in 2010???  LID customers are in system,  Customers who had a business, multi-family dwelling, or other classifications other than “Single Family Dwellings” cut down on consumption, by 20.5 million gallons, although this customer base grew by 74!  Inflated costs of doing business over-ran expenditures by 3.02.  Although there is an increased customer base, nearly 23 million less gallons of water were consumed.  Expenditures were higher than budgeted, in part to increased utility cost, and again for the received benefit from the State of Alaska for on behalf payments of $49,818. This was recorded as an Expenditure and also as “Non-Operating” Income.

11. Single Family Dwelling – 897 2009 Actual Use Bulk Users, 19,363,800 Gallons, 15.8% Single Family Use 30,819,200 Gallons, 25.2% Others - 472 Bulk - 2 122,210,500 Gallons 2010 Actual Use Bulk Users, 19,963,500 Gallons, 16.5% Single Family Use 33,084,800 Gallons, 27.3% 121,179,200 Gallons Single Family Dwelling – 1,023 Others - 496 Bulk - 2 2009 - 10 Budget Bulk Users, 17,246,236 Gallons, 12.0% Single Family Use 37,651,450 Gallons, 26.2% Bulk - 4 Others - 422 Single Family Dwelling – 1,035 143,569,147 Gallons $406,321$972,961$246,327$453,135$925,492$253,937 $476,919 $1,137,420 $220,055 WATER ANALYSIS – COMPARISION OF 2009, 2010, AND BUDGETED

12. Single Family Dwelling – 897 2009 Actual Use Single Family Use 35,912,987 Gallons, 33.7% Others - 472 106,466.525 Gallons 2010 Actual Use Other Users, 66,656,938 Gallons, 63.6% Single Family Use 38,178,587 Gallons, 36.4% 104,835,525 Gallons Single Family Dwelling – 1,157 Others - 496 2009 - 10 Budget Single Family Use 37,651,450 Gallons, 29.8% Others – 411 Single Family Dwelling – 1,054 126,319,911 Gallons $605,492$1,005,076$658,321$961,584 $623,345 $1,219,409 SEWER ANALYSIS – COMPARISION OF 2009, 2010, AND BUDGETED

14. In Summary -In Summary -  During the 2009 – 2010 years,  There has been an increase in customers by about 60 users.  Water usage decreased significantly by 22 million gallons.  Although there was a significant drop in consumption, there was not a corresponding drop in expenditures. This signifies that the bulk of expenditures for the utility are fixed in nature.  In 2009 the net loss for the Utility was $383,828, in 2010 the loss was $217,869, collectively this depletes the fund balance for these two years by $601,697.  Direction from Council needed:  Options:  Decrease Expenditures;  Increase Revenues;  Consider adjusting the charge per gallon among the user groups as the % of use and users has changed.  Revise depreciation reserve contributions by the amount of year end income recorded.  For example, instead of budgeting a $500,000 contribution to reserves, complete a resolution to transfer any income balances to the depreciation reserves.  2011 Beginning Balance for Depreciation Reserves are $4,249,543.