Columbus Light and Water’s financial troubles in the water department seem to be turning around, according to a financial report from the utility’s general manager Todd Gale.
Gale, who presents monthly reports to the CLW board, said Thursday the department is in much stronger shape — and even better than expected in the budget — than it was at this point in the previous fiscal year.
Four months into Fiscal Year 2016-17, the water department has generated $3.9 million in sales. That total was at about $3.5 million at the same time last year.
Gale said sales are up $368,489, and expenses are down $48,161, compared to last year.
The water department has, so far, seen a net income of $942,268, which is $505,913 better than FY 2015-16. The total is $465,947 better than CLW expected in its budget.
Gale said the net income, through January, is equivalent to what the department had drawn in by May in the previous fiscal year.
While Gale noted that could shift, the improvement is a welcome stabilization for a department that was forced to scramble to stop financial bleeding last year. In January 2015, the board voted to raise water and sewage rates eight percent. The department also cut six positions, which was expected to save the department more than $400,000.
Those measures have helped, Gale said. He also said improved sales have bolstered the department’s finances.
“I don’t know what to contribute that to, because it seems to be all across the board,” Gale said. “At first, I thought it might be what (the Tennessee Valley Authority) was using — we send water to TVA. They’re up, but you can’t contribute all that to them.”
Gale said it’s also hard to determine if the increased usage is a seasonal trend. For example, in recent years, warm falls have helped bolster the electric department for the first halves of its fiscal years, which begin Oct. 1 –though warm winters have hindered what’s typically a second usage peak when temperatures normally drop.
So far, water usage doesn’t seem to be following a particular trend.
“Usually people stop watering their yards in July because everything’s dead,” Gale said. “But for some reason, they just continue to use the same amount. They never really stopped. I don’t know–you can only really guess at that.”
Board member Tiffany Sturdivant said she’s pleased with the department’s growth.
“That’s always a plus–you always want to maximize that,” she said. “I’m happy to see the progress, but I’m not satisfied. I’d like to see more.”
If the water department’s improved financial bearings hold, Gale said he will likely ask the board to use the extra revenue for capital improvement.
One particular project may use assistance from a private company.
Verizon, which has cellular equipment on the River Hill water tank–the big blue water tank near the Riverwalk–is talking with the CLW to upgrade the equipment on top of the tower.
While nothing is determined yet, Gale said he hopes to paint the top of the 2million gallon tank in the process.
He said he’s also considering how to proceed with painting the rest of the 31-year-old tower, which has badly aged and has peeling paint. He said it would cost roughly $800,000 to completely repaint the tank by removing the old paint and applying a fresh coat, which is too expensive.
However, he said TNEMEC, a paint company, should be looking at the tower in the next few weeks to estimate an overlay, which would simply put a new coat of paint over the old one.
Sturdivant said she hopes to see the Verizon deal come through for CLW.
“That’s something that’s been overdue for a while,” she said. “I’m excited we’ve got these businesses to come in and help our city. It’s not going to fix the whole thing, but it’s at least a start.”
Alex Holloway was formerly a reporter with The Dispatch.
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