Lebanon Utilities 2010 Operating Efficiency Analysis

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Lebanon Utilities has asked the Lebanon City Council to approve a Water Utility rate increase that would increase the average monthly home water bill from $16.82 today to $18.33 later this year, $19.99 in 2011, $21.60 in 2012, $23.32 in 2013, and $25.20 in 2014. The annual cost for water service to the average home would increase 50% from $201.84 today to $302.40 in 2014.

Lebanon Utilities has requested the water rate increase because "revenues have dropped due to the economic downturn." Of course, the average Lebanon ratepayer has also suffered economically in the aftermath of the nation's longest recession since the Great Depression.

It is NOT Ratepayer Friendly for the Lebanon City Council to automatically grant a water rate increase in these tough economic times without first carefully evaluating the operating efficiency of Lebanon Utilities.

Included below is a spreadsheet summary of the data from the 2003 through 2009 Lebanon Utilities Financial Statements. The questions listed next resulted from an analysis of the spreadsheet and have been submitted to Lebanon Utilities.

(1) Are the Electric Utility Municipal Sales to the City of Lebanon only?

(2) What are the Electric Utility Fiber Sales?

(3) Why is the Electric Utility Purchased Power expense steadily increasing every year?

(4) Which of the Electric Utility Distribution Expense line items represent salaries and wages?

(5) Which of the Electric Utility Customer Records & Collection line items represent salaries and wages?

(6) Why have the Bad Debt Expenses disappeared (starting in 2008)?

(7) Why are Employee Pensions listed for the Electric Utility only?

(8) Why was there such a big jump in the 2009 Electric Utility Employee Pensions & Benefits?

(9) What kind of Outside Services are employed by the Electric Utility?

(10) Why are the Electric Utility Taxes steadily increasing?

(11) Does the "Acquisition and Construction of Capital Assets" line item on each division's Cash Flow statement represent the year's TOTAL capital spending by the division?

(12) Does the "Cash and Cash Equivalents - End of Period" line item on each division's Cash Flow statement represent the TOTAL reserve funds for the division?

(13) What is "Retained Earnings - End of Period."

(14) What are General Maintenance Agreements?

(15) Why was there a 2009 Water Utility expense increase in Source of Supply/Transmission Miscellaneous?

(16) Why was there a 2009 Water Utility expense increase in Distribution Materials & Supplies?

(17) Why was there a 2009 Water Utility expense increase in Customer Accounts Materials & Supplies?

(18) Why was there a 2009 Water Utility expense increase in Administrative & General Office Supplies/Expense.

(19) Why was there a 2009 Water Utility expense increase in Administrative & General Outside Services?

(20) Why was there a 2009 Water Utility expense increase in Administrative & General Utilities?

(21) Why was there a 2009 Water Utility expense increase in Administrative & General Maintenance Agreements?

(22) Why was there a 2009 Electric Utility expense increase in Administrative & General Office Supplies/Expenses?

(23) Why was there a 2009 Wastewater Utility expense increase in Collection System Materials & Supplies?

(24) Why was there a 2009 Wastewater Utility expense increase in Treatment & Disposal Contractual?

(25) Why was there a 2009 Wastewater Utility expense increase in Administrative & General Office Supplies?

(26) What PRIVATE sector companies are in competition with the Telecommunications Division to provide High-Speed Wireless Internet Access (Wi-Fi) services?

(27) How much will it cost the Telecommunications Division to make the planned May-June, July-August, and September-October Broadband Over Power Lines (BPL) coverage area expansions?

(28) Why did the 2009 Telecommunications Division BPL revenue decline?

(29) What is the source of the Telecommunications Division Fiber Commercial revenue?

(30) What is the source of the 2009 Telecommunications Division Other revenue?

(31) Why does the Telecommunications Division have ongoing Legal Fees?

(32) Why did the Telecommunications Division have $43,900 in 2008 Accounting Fees?

(33) Where did the Telecommunications Division get the money to cover its $1.24 million in losses the past six years?

(34) Why did the 2009 Water Utility salaries and wages increase at a rate greater than the Electric Utility and Wastewater Utility?

(35) Why are the Water Utility salaries and wages increasing at a rate greater than the Indiana per capita personal income?

(36) Why did the 2009 Lebanon Utilities employee pensions and benefits increase 32.38% from the prior year?

(37) What benefits do current Lebanon Utilities employees receive?

(38) What are the pension arrangements for current Lebanon Utilities employees.

(39) How much did a Lebanon Utilities employee pay for health insurance in 2003?

(40) Did 2003 Lebanon Utilities employees have a health insurance deductible?

(41) Did 2003 Lebanon Utilities employees have a health insurance copay requirement?

(42) How much does a current Lebanon Utilities employee pay for health insurance?

(43) Do current Lebanon Utilities employees have a health insurance deductible?

(44) Do current Lebanon Utilities employees have a health insurance copay requirement?

(45) Is Lebanon Utilities a member of any insurance purchasing pools?

(46) Why does the 2010 Lebanon Utilities Budget assume a 40% increase in group health insurance?

(47) Why does the 2010 Lebanon Utilities Budget assume a 10% increase in funding to the defined benefit plan?

(48) What is the Lebanon Utilities defined benefit plan?

(49) What vacant Lebanon Utilities positions prior to 2010 have been filled thus far in 2010 or will be filled before 2011?

(50) Why did the Electric Utility Average Revenue per kWh Sold increase 29% from 2004 to 2008?

(51) Why is the 2010 budgeted Conference & Training expense for the Electric Utility 41% more than 2008?

(52) Why is the 2010 budgeted Conference & Training expense for the Water Utility 70% more than 2008?

(53) Why is the 2010 budgeted Conference & Training expense for the Wastewater Utility 163% more than 2008?

(54) Why is the 2010 budgeted Conference & Training expense for the Telecommunications Division 158% more than 2008?

Lebanon Utilities Financial Statements Summary 2003-2009
(April 24, 2010)
Source: Lebanon Utilities Financial Statements

ELECTRIC UTILITY			2003	2004	2005	2006	2007	2008	2009
Operating Revenue:
	Residential Sales		3,806,485	4,087,291	4,652,077	4,970,759	5,286,367	5,634,406	6,134,219
	Commercial Sales		1,029,538	1,031,828	1,088,149	1,225,835	1,175,708	1,301,887	1,392,073
	Industrial Sales		4,438,609	5,152,394	6,067,563	6,505,881	6,894,735	7,220,073	7,500,492
	Small Power Sales		917,001	1,014,014	1,109,227	1,252,245	1,245,129	1,375,436	1,489,262
	Public Street & Highway Lighting		115,776	118,699	115,377	116,684	119,937	115,067	145,444
	Municipal Sales		67,636	76,648	70,061	63,194	68,683	69,497	73,714
	Fiber Sales							6,650	6,004
	Penalties		56,726	65,335	69,324	59,994	80,362	94,384	101,468
	Reconnect / Disconnect			34,060	49,080	11,720	21,620	18,900	39,500
	Federal Aid				31,858
	Other Operating		77,242	65,135	142,744	91,147	65,213	88,469	124,118
	TOTAL Operating Revenue		10,509,013	11,645,404	13,395,460	14,297,459	14,957,754	15,924,769	17,006,294
Operating Expenses:
	Purchased Power		7,976,567	8,972,270	10,462,317	11,347,840	12,017,620	12,663,044	13,844,800
	Distribution Expenses:
		Supervision & Engineering	164,232	156,517	160,860	229,935	223,452	232,685	230,632
		Station Expense	39,258	61,896	63,933	78,670	117,676	60,924	75,025
		Overhead Lines	307,581	331,089	254,369	249,576	266,419	250,176	258,056
		Underground Lines	147,134	115,119	137,704	135,415	224,415	139,848	209,179
		Tree Trimming		105,242	78,013	81,590	59,883	57,573	100,291
		Transportation					26,894	32,123	33,453
		Fiber						51,969	2,378
		Street Lights & Signals	10,401	11,886	13,264	15,452	9,446	11,132	11,051
		Uniforms					17,890	14,409	16,775
		Maintenance of General Plant					11,756	5,870	5,168
		Rent	18,210	16,390	18,195	17,558	8,611	6,896	5,456
		Other	122,412	31,059	31,605	12,400	39,687	59,537	93,177
	Customer Records & Collection:
		Meter Reading	46,776	39,827	39,562	57,773	56,232	64,163	62,366
		Meter Expense	33,179	34,785	22,241	68,876	28,779	94,372	19,881
		Billing	23,843	18,822	21,356	19,748	20,811	22,776	21,076
		Bad Debt Expense	105,330	116,454	133,955	142,975	149,566
	Administrative & General Expenses:
		Salaries	194,492	210,721	237,638	208,924	204,826	199,864	196,876
		Office Expense	73,016	101,685	97,685	106,889
		Office Supplies / Expense					102,666	103,505	145,189
		Outside Services Employed	53,342	82,168	116,025	137,271	119,303	226,368	125,888
		Insurance	46,453	53,639	41,988	32,092	10,692	(1,215)
		Employee Pensions & Benefits	290,880	349,651	406,952	529,005	473,273	479,229	729,589
		Payment in Lieu of Taxes	61,500	61,500	61,500	61,500	61,500	61,500	61,500
		Depreciation Expense	187,465	221,029	233,129	242,764	260,745	269,342	293,707
		Lease Principal - New Building			23,410	48,450	44,460	47,709	48,593
		Taxes	148,653	176,465	186,055	205,993	210,047	223,067	263,825
		Utilities		17,656	19,596	18,921	22,790	24,427	25,773
		Other	171,205	143,489	199,142	129,865	51,722	121,737	108,953
	TOTAL Operating Expenses		10,221,929	11,429,359	13,060,494	14,179,482	14,841,161	15,523,030	16,988,657
Operating Income			287,084	216,045	334,966	117,977	116,593	401,739	17,637
Nonoperating Revenue (Expenses):
	Interest Income		103,746	116,315	227,805	390,138	431,136	138,757	57,875
	Interest Expense		(24)	(87)	(45,649)	(44,408)	(38,867)	(38,973)	(37,661)
	Loss on Disposal of Asset		(1,079)	(26,208)	(62,048)	(3,991)	(22,328)	(1,117)	(172)
	Gain on Sale of Assets		49,877
	TOTAL Nonoperating Revenue		152,520	90,020	120,108	341,739	369,941	98,667	20,042
Net Income			439,604	306,065	455,074	459,716	486,534	500,406	37,679
Retained Earnings - Beginning of Period			11,683,627	12,123,231	12,429,296	12,884,370	13,344,086	13,830,620	14,331,026
Retained Earnings - End of Period			12,123,231	12,429,296	12,884,370	13,344,086	13,830,620	14,331,026	14,368,705
Operating Revenue per Customer			1,334.48	1,448.43	1,646.24	1,706.14	1,802.14	1,916.11	2,023.60
Operating Expense per Customer			1,295.02	1,421.56	1,605.07	1,692.06	1,788.09	1,867.77	2,021.50
Remainder per Customer for Capital Improvements			39.46	26.87	41.17	14.08	14.05	48.34	2.10
Capital Improvements per Customer			81.61	87.19	18.95	44.24	167.33	97.53	230.92
Profit (Loss) per Customer			(42.15)	(60.32)	22.22	(30.16)	(153.28)	(49.19)	(228.82)
Acquisition and Construction of Capital Assets			644,176	701,006	154,187	370,704	1,388,802	810,589	1,940,670
Cash and Cash Equivalents - End of Period			4,326,782	4,210,582	4,304,437	9,915,352	9,481,000	9,150,518	7,526,948

WATER UTILITY			2003	2004	2005	2006	2007	2008	2009
Operating Revenue:
	Residential		994,481	1,004,709	1,173,334	1,188,689	1,206,058	1,174,447	1,120,827
	Commercial		357,133	365,588	411,756	410,533	416,245	418,616	418,620
	Industrial		150,250	160,441	165,963	157,780	167,559	169,412	135,646
	Fire Protection		212,746	212,586	213,706	211,946	212,826	212,826	212,906
	Availability Fees		3,641	37,845	379,298	47,748	57,664	93,141	14,801
	Reconnect / Disconnect Fees						23,800	20,980	30,980
	Tap Fees		14,195	12,712	11,004	4,660	11,000	2,600	2,190
	Rent						7,475	6,687	7,274
	Inspection / Connection Fees		200	3,285	12,793	4,595	5,606	10,791	5,860
	Late Penalties		11,848	11,661	13,168	10,020	13,878	15,535	13,165
	Other		58,595	68,181	100,979	52,348	22,724	17,862	21,403
	TOTAL Operating Revenue		1,803,089	1,877,008	2,482,001	2,088,319	2,144,835	2,142,897	1,983,672
Operating Expenses:
	Source of Supply / Transmission (2007-09):
		Salaries & Wages	154,387	165,170	173,083	172,266	182,449	182,493	191,532
		Fuel / Transportation					10,330	13,528	8,037
		Purchased Power	4,646	5,184	7,016	7,712
		Office Supplies	195	325	73	174
		Chemicals	30,333	34,386	40,373	39,408	47,225	39,735	38,247
		Well Expense		3,500	564	2,972	34,796	3,754	4,702
		Materials & Supplies	141	3,769	895	594
		Miscellaneous					11,057	9,552	23,658
	Transmission (2003-06) & Distribution:
		Salaries & Wages	116,710	133,014	152,864	162,604	174,385	175,704	183,821
		Fuel / Transportation					10,334	11,490	8,611
		Purchased Power	3,931	5,183	7,016	7,711
		Office Supplies	170	687	971	1,024	1,864	2,852	3,761
		Chemicals	349	577	921	626	1,114	902	1,791
		Meter Expense					7,515
		Materials & Supplies	2,955	581	2,544	1,864		5,792	16,474
		Maintenance	19,933	12,620	23,533	19,478
		Line Maintenance					9,517	6,862	1,152
		Other		11,046
		Miscellaneous					5,376	2,622	3,977
	Customer Accounts:
		Salaries & Wages	82,546	76,593	82,532	83,073	86,818	89,940	85,443
		Materials & Supplies	99,740	99,698	69,543	77,703	81,262	9,692	39,584
		Meter Testing					5,540	482
		Postage	15,406	16,134	16,834	17,780	19,771	19,594	23,472
		Bad Debt Expense	18,089	18,770	24,820	20,883	23,210
	Administrative & General
		Salaries & Wages	231,370	243,248	237,934	230,524	225,223	225,714	231,679
		Employee Benefits	258,055	305,754	325,927	384,918	346,837	421,060	488,786
		Office Supplies / Expense			24,089	20,976	62,122	56,655	82,106
		Outside Services	123,552	119,047	88,157	87,439	66,649	58,800	140,499
		Transportation Expense	4,165	1,928	5,303	3,289
		Regulatory Fees					6,564	6,564	6,564
		Depreciation	259,321	266,077	275,756	297,543	300,178	296,713	305,910
		Insurance	35,001	46,443	43,876	28,691	9,724	238
		Utilities	85,812	83,146	94,439	99,294	113,382	103,971	130,533
		Taxes	23,033	22,956	26,174	27,013	29,587	23,567	29,559
		Payment in Lieu of Taxes	112,164	112,164	112,164	112,164	112,164	112,164	112,164
		General Maint. Agreements	14,097	26,111	10,197	15,191	15,366	21,341	29,757
		Lease Principal - New Building			23,410	48,450	44,460	47,709	48,593
		Other	110,607	100,356	128,651	132,878	27,590	42,364	45,761
	TOTAL Operating Expenses		1,806,708	1,914,467	1,999,659	2,104,242	2,072,409	1,991,854	2,286,173
Operating Income			(3,619)	(37,459)	482,342	(15,923)	72,426	151,043	(302,501)
Nonoperating Revenue (Expenses):
	Interest Income		66,299	63,571	137,001	261,559	269,606	92,798	39,174
	Gain (Loss) on Disposal of Assets			(44,639)		(1,136)	(4,999)		(2,141)
	Interest Expense		(2)	(16)	(45,640)	(44,408)	(38,867)	(38,973)	(37,661)
	TOTAL Nonoperating Revenue		66,297	18,916	91,361	216,015	225,740	53,825	(628)
Extraordinary Items:
	Gain on Sale of Assets		49,877
	Loss on Sale of Assets		(10,506)
	TOTAL Extraordinary Items		39,371	0	0	0	0	0	0
Net Income (Loss)			102,049	(18,543)	573,703	200,092	298,166	204,868	(303,129)
Retained Earnings - Beginning of Period			19,542,209	19,644,257	19,625,714	20,199,417	20,399,509	20,697,675	20,902,543
Retained Earnings - End of Period			19,644,258	19,625,714	20,199,417	20,399,509	20,697,675	20,902,543	20,599,414
Operating Revenue per Customer			297.18	302.94	395.98	330.80	339.80	338.80	313.28
Operating Expense per Customer			296.18	308.98	319.03	333.32	328.33	314.92	361.05
Remainder per Customer for Capital Improvements			0.37	(6.04)	76.95	(2.52)	11.47	23.88	(47.77)
Capital Improvements per Customer			108.61	151.62	52.32	53.56	27.49	25.43	108.09
Profit (Loss) per Customer			(108.24)	(157.66)	24.63	(56.08)	(16.02)	(1.55)	(155.86)
Acquisition and Construction of Capital Assets			627,656	939,456	327,948	338,129	173,487	160,851	684,413
Cash and Cash Equivalents - End of Period			3,276,989	2,713,299	3,558,843	5,889,971	6,404,597	6,286,872	6,041,051

WASTEWATER UTILITY			2003	2004	2005	2006	2007	2008	2009
Operating Revenue:
	Residential		1,580,156	1,595,932	2,108,541	2,267,467	2,265,093	2,261,288	2,164,490
	Commercial		587,879	596,641	775,885	800,170	835,658	822,405	827,348
	Industrial Sales		333,605	359,515	410,411	405,210	428,679	436,077	350,229
	Late Penalties		62,299	62,869	76,092	63,441	86,943	86,273	81,282
	Tap Fees		59,920	29,018	43,500	19,700	19,600	9,439	1,500
	Availability Fees		4,286	46,500	284,490	50,049	72,738	85,088	7,581
	Inspection Fees		4,050	4,450	4,200	7,237	4,387	3,351	2,193
	Other		32,336	123,369	85,510	26,064	21,439	24,029	159,182
	TOTAL Operating Revenue		2,664,531	2,818,294	3,788,629	3,639,338	3,734,537	3,727,950	3,593,805
Operating Expenses:
	Collection System:
		Salaries & Wages	191,508	233,624	247,481	210,055	226,288	240,894	237,552
		Purchased Power	145,059	164,997	7,016	7,711
		Chemicals	449
		Fuel & Transportation					10,565	13,375	10,666
		Materials & Supplies	14,668	10,880	11,451	10,729	9,627	9,406	15,324
		Miscellaneous Equipment	6,528	8,081	5,068	6,802	1,733	4,220	2,961
		Other	6,326	12,781	13,083	6,604	12,412	12,935	12,447
	Pumping Expense:
		Salaries & Wages (Lab)	98,435	31,775	25,067	29,677	58,668	83,123	82,495
		Miscellaneous	14,873	7,738	11,087	10,626	13,536	9,525	2,806
	Treatment & Disposal:
		Salaries & Wages	160,743	204,455	210,216	207,761	200,443	190,280	196,805
		Purchased Power	3,931	5,184	7,016	117
		Fuel & Transportation					10,142	11,617	8,769
		Sludge Removal	90,546	91,050	95,437	110,791	86,985	134,809	107,603
		Chemicals	26,769	27,939	22,330	25,692	20,162	20,270	14,486
		Materials & Supplies	5,735	368	367	528
		Liftstation Expense					11,545	11,166	6,273
		Contractual	44,812	109,880	41,441	28,031	43,153	37,032	101,383
		Miscellaneous Equipment	3,159	2,625	4,885	1,517	2,395	8,688	8,452
		Other	19,363	8,553	13,288	10,340	13,730	13,628	15,284
	Customer Accounts:
		Salaries & Wages	75,387	70,013	75,821	76,517	77,480	84,414	80,408
		Materials & Supplies	3,037	14,457	43	3,282
		Meter Expense					2,880		843
		Postage					19,693	19,637	22,737
		Bad Debt Expense	26,737	28,183	37,886	36,393	37,346	112
	Administrative & General Expenses:
		Salaries & Wages	225,195	231,671	240,417	228,452	235,965	238,510	241,716
		Employee Benefits	367,103	406,166	406,861	454,838	389,358	480,879	605,384
		Office Supplies			23,365	17,237	64,155	55,266	89,551
		Outside Services	92,257	56,582	37,133	61,430	39,786	23,836	40,744
		Depreciation & Amortization	501,180	533,096	543,585	600,708	613,656	671,243	713,235
		Insurance	40,984	42,907	29,097	25,045	16,153	714
		Payment in Lieu of Taxes	40,042	40,042	40,042	40,042	40,042	40,042	40,042
		General Maint. Agreements	15,589	25,578	11,841	21,833	17,098	24,993	27,862
		Utilities			174,624	170,416	189,969	215,798	226,900
		Regulatory Expense					8,500	9,500	9,500
		Lease Principal - New Building			23,410	48,450	44,460	47,709	48,593
		Other	136,338	150,965	150,412	129,395	47,079	51,420	41,375
	TOTAL Operating Expenses		2,356,753	2,519,590	2,509,770	2,581,019	2,565,004	2,765,041	3,012,196
Operating Income			307,778	298,704	1,278,859	1,058,319	1,169,533	962,909	581,609
Nonoperating Revenue (Expenses):
	Interest Income		49,388	33,795	110,971	205,810	183,959	61,257	28,666
	Interest Expense		(266,480)	(254,423)	(346,445)	(457,827)	(438,757)	(422,756)	(404,021)
	Loss on Sale of Asset			(3,150)		(1,136)	(4,999)		(2,141)
	TOTAL Nonoperating Revenue		(217,092)	(223,778)	(235,474)	(253,153)	(259,797)	(361,499)	(377,496)
Extraordinary Items:
	Gain on Sale of Assets		49,877
	Loss on Sale of Assets
	TOTAL Extraordinary Items		49,877	0	0	0	0	0	0
Net Income			140,563	74,926	1,043,385	805,166	909,736	601,410	204,113
Retained Earnings - Beginning of Period			13,457,123	13,597,686	13,672,612	14,715,997	15,521,163	16,430,899	17,032,309
Retained Earnings - End of Period			13,597,686	13,672,612	14,715,997	15,521,163	16,430,899	17,032,309	17,236,422
Operating Revenue per Customer			460.27	475.42	630.91	600.65	615.96	612.85	589.83
Operating Expense per Customer			405.71	425.03	417.95	425.98	423.06	454.55	494.37
Remainder per Customer for Capital Improvements			54.56	50.39	212.96	174.67	192.90	158.30	95.46
Capital Improvements per Customer			199.77	277.15	349.36	498.06	142.23	39.26	62.83
Profit (Loss) per Customer			(145.21)	(226.76)	(136.40)	(323.39)	50.67	119.04	32.63
Acquisition and Construction of Capital Assets			1,160,443	1,642,923	2,097,915	3,017,758	862,353	238,793	382,795
Cash and Cash Equivalents - End of Period			4,202,273	2,843,106	6,020,376	4,148,522	4,581,228	4,991,425	4,825,449

TELECOMMUNICATIONS DIVISION			2003	2004	2005	2006	2007	2008	2009
Operating Revenue:
	BPL Residential Access					1,264
	BPL Modem Rental					950
	BPL Residential						8,407	12,858	8,923
	Wireless Residential Access				8,616	20,065
	Wireless Residential Equipment				1,700	14,273
	Wireless Residential						103,352	179,130	213,007
	BPL Commercial						1,475	1,295	1,391
	Wireless Commercial						51,141	52,122	53,399
	Wireless Commercial Access				3,958	34,328
	Wireless Commercial Equipment				1,340	11,763
	Wireless Commercial Installations					1,950
	Wireless Commercial Set-up					390
	BPL Custom						486	84
	Wireless Custom						16,149	22,156	18,450
	Wireless Custom Commercial				1,844	13,304
	Fiber Commercial							15,210	121,275
	Other				900	9,432	5,678	4,828	62,245
	TOTAL Operating Revenue				18,358	107,719	186,688	287,683	478,690
Operating Expenses:
	Purhased Sevices:
		Bandwidth				35,623	31,790	41,988	44,331
		Internet Services				1,997
		Legal Fees			12,499	3,728	8,903	15,383	14,015
		Engineering Fees			753	5,281
		Help Desk			10,742	47,272	10,421
		Installations & Set-up				3,107
		Consulting Fees				16,098	10,634	8,222	1,827
		Accounting Fees			2,575		1,558	43,900	619
		Contractual Services		1,390
	Communication Expense:
		Communications Equipment					38,915	24,481	15,081
		Salaries & Wages - Cust. Install					47,726	25,052	40,887
		Installation Supplies					89,564	23,388	17,525
		Customer Premise Equipment					51,513	1,610
		Tools & Equipment					3,577	794	2,671
		Fiber - Overhead							3,406
		Transportation					3,009	2,040
	Customer Records and Collection:
		Billing				10,485	5,164	2,084	1,946
		Bad Debt Expense				10,818	(7,869)
	Administrative and General Expenses:
		Salaries & Wages			11,294	115,514	117,336	98,258	101,784
		Employee Benefits			1,782	14,550	76,553	76,999	106,531
		Comp. Eq. / Communications					9,764	832	6,324
		Communications Equipment			6,862	53,037
		Computer Equipment			28,899	9,121
		Software			7,809
		General Maint. Agreements		120	1,374	9,835	4,859	4,116	5,009
		Office Supplies			66			15,632	10,783
		Computer Communications			371	7,292
		Promotion		5,000		2,964	38,553
		Utilities					4,891	4,231	5,114
		Transportation							2,568
		Freight / Shipping					8,185	748	3,405
		Depreciation Expense			8,668	42,340	50,985	56,712	58,544
		Lease Principal					14,820	10,773	10,973
		Gross Income Tax					2,750	3,800	5,571
		Miscellaneous			6,997	102,877	48,063	17,272	25,723
	TOTAL Operating Expenses			6,510	100,691	491,939	671,664	478,315	484,637
Operating Income (Loss)				(6,510)	(82,333)	(384,220)	(484,976)	(190,632)	(5,947)
Nonoperating Revenue (Expenses):
	Interest Income			208	2,864	17,857	36,466	1,912	421
	Interest Expense				(4,193)	(18,007)	(75,552)	(39,640)	(8,505)
	TOTAL Nonoperating Revenue			208	(1,329)	(150)	(39,086)	(37,728)	(8,084)
Net Income (Loss)				(6,302)	(83,662)	(384,370)	(524,062)	(228,360)	(14,031)
Retained Earnings - Beginning of Period				0	(6,302)	(89,964)	(474,334)	(998,396)	(1,226,756)
Retained Earnings - End of Period				(6,302)	(89,964)	(474,334)	(998,396)	(1,226,756)	(1,240,787)
Acquisition and Construction of Capital Assets						59,057	54,477	8,550	57,845
Cash and Cash Equivalents - End of Period						1,367,263	394,429	35,570	46,282

Employee Pensions & Benefits Analysis			2003	2004	2005	2006	2007	2008	2009
Electric Utility Employee Pensions & Benefits			290,880	349,651	406,952	529,005	473,273	479,229	729,589
Water Utility Employee Benefits			258,055	305,754	325,927	384,918	346,837	421,060	488,786
Wastewater Utility Employee Benefits			367,103	406,166	406,861	454,838	389,358	480,879	605,384
Telecommunications Division Employee Benefits					1,782	14,550	76,553	76,999	106,531
	TOTAL Employee Pensions & Benefits		916,038	1,061,571	1,141,522	1,383,311	1,286,021	1,458,167	1,930,290
	Percent Increase (Decrease)			15.89%	7.53%	21.18%	(7.03%)	13.39%	32.38%
	Six-Year Average Annual Increase = (15.89% + 7.53% + 21.18% - 7.03% + 13.39% + 32.38%) / 6 = 13.89%

Electric Utility Salaries Analysis			2003	2004	2005	2006	2007	2008	2009
Administration & General			194,492	210,721	237,638	208,924	204,826	199,864	196,876

Water Utility Salaries & Wages Analysis			2003	2004	2005	2006	2007	2008	2009
Source of Supply /Transmission (2007-09)			154,387	165,170	173,083	172,266	182,449	182,493	191,532
Transmission (2003-06) & Distribution			116,710	133,014	152,864	162,604	174,385	175,704	183,821
Customer Accounts			82,546	76,593	82,532	83,073	86,818	89,940	85,443
Administration & General			231,370	243,248	237,934	230,524	225,223	225,714	231,679
	TOTAL Water Utility Salaries & Wages		585,013	618,025	646,413	648,467	668,875	673,851	692,475
	Percent Increase			5.64%	4.59%	0.32%	3.15%	0.74%	2.76%
	Six Year Average Annual Increase = (5.64% + 4.59% + 0.32% + 3.15% + 0.74% + 2.76%) / 6 = 2.87%

Wastewater Utility Salaries & Wages Analysis			2003	2004	2005	2006	2007	2008	2009
Collection System			191,508	233,624	247,481	210,055	226,288	240,894	237,552
Pumping Expense (Lab)			98,435	31,775	25,067	29,677	58,668	83,123	82,495
Treatment & Disposal			160,743	204,455	210,216	207,761	200,443	190,280	196,805
Customer Accounts			75,387	70,013	75,821	76,517	77,480	84,414	80,408
Administration & General			225,195	231,671	240,417	228,452	235,965	238,510	241,716
	TOTAL Wastewater Utility Salaries		751,268	771,538	799,002	752,462	798,844	837,221	838,976
	Percent Increase (Decrease)			2.70%	3.56%	(5.82%)	6.16%	4.80%	0.21%
	Six Year Average Annual Increase = (2.70% + 3.56% - 5.82% + 6.16% + 4.80% + 0.21%) / 6 = 1.94%

Telecommunications Division Salaries Analysis			2003	2004	2005	2006	2007	2008	2009
Communication Customer Install							47,726	25,052	40,887
Administration & General					11,294	115,514	117,336	98,258	101,784
	TOTAL Telecom Div. Salaries & Wages				11,294	115,514	165,062	123,310	142,671
	Percent Increase (Decrease)						42.89%	(25.29%)	15.70%
	Three Year Average Annual Increase = (42.89% - 25.29% + 15.70%) / 3 = 11.1%

Boone County Income Analysis			2003	2004	2005	2006	2007	2008	2009
Median Household Income			57,515	59,206	60,539	63,619	65,106	72,603
	Percent Increase			2.94%	2.25%	5.09%	2.34%	11.52%
	Five Year Average Annual Increase = (2.94% + 2.25% + 5.09% + 2.34% + 11.52%) / 5 = 4.83%
Source: http://www.census.gov//did/www/saipe/county.html

Indiana Income Analysis			2003	2004	2005	2006	2007	2008	2009
Per Capita Personal Income			29,573	30,627	31,279	32,842	33,702	34,543	33,725
	Percent Increase (Decrease)			3.56%	2.13%	5.00%	2.62%	2.50%	(2.37%)
	Six Year Average Annual Increase = (3.56% + 2.13% + 5.00% + 2.62% + 2.50% - 2.37%) / 6 = 2.24%
Source: http://www.bea.gov/regional/spi/default.cfm?selTable=summary

This page was last updated on 06/07/14 .