CLEVELAND, Tenn. — Weaker-than-expected water sales continue to be a concern for Cleveland Utilities.
“This is the seventh consecutive month a negative net income has occurred in water,” the utility’s finance director, Ken Webb, told members of CU’s board Friday.
Water sales for April were 7.3 percent more than April 2009, he said, but were 6.3 percent below the budgeted amount for the current fiscal year.
April’s water revenue was more than $928,000, he said, but expenses were more than $1 million, leaving the Water Division with a $73,000 loss for the month.
That loss was the smallest in four months, he said, so CU officials are hoping things will start turning around soon. There’s also a shortfall in the budget for access fees, which includes new meters, he said.
“I would never advocate customers use water in a wasteful manner, but there is a minimum amount of water that needs to be sold to cover fixed cost in the system,” he said.
Craig Mullinax, Water Division director, said the utility’s monthly average of new water meters — known as “sets” — remains below 2008 levels. Crews set 19 new water meters in April, compared with 27 in April 2009 and 43 in April 2008.
TRACKING METERSYear April To date*2010: 19 2092009: 27 2652008: 43 423* Total new meters to date in fiscal yearSource: Cleveland Utilities
“We are down to about 21 sets a month on average,” he said. “This is all sets, including commercial, but predominantly residential.”
Cleveland Utilities’ service area includes the city and some areas just outside the city limits but not all of Bradley County.
Mr. Webb said that, despite the lower revenues, the utility’s electric and wastewater divisions had a recovery month, financially, in April.
“The three major customer classifications (for electricity sales) of residential, commercial and industrial had increased kilowatt-hour sales over April 2009,” he said.
Industrial electricity sales were up 6.5 percent over the same month a year ago, he said, and “this is a really good sign.”