Electric rates for the city of Poplar Bluff are covering expenses, according to information discussed Monday by members of the Municipal Utilities Advisory Board.
Operating revenue exceeded expenses by approximately $1.3 million in 2017, an audit document reviewed by the board shows.
This supports the board's decision to limit a 2015 rate electric increase to less than the amount proposed by a paid advisor, said board member Sam Schalk.
"We've done what we thought we would," he asked of general manager Bill Bach, adding later, "We really didn't come in out of the pasture like they thought we were going to with mud on our shoes."
General manager Bill Bach agreed, adding Utility Financial Solutions predicted the smaller increase would fail to support operations. UFS was hired by former city manager Heath Kaplan and had proposed a nearly 10 percent residential increase.
The electric department saw operating revenues of more than $37.9 million in 2017, according to the audit. Utility service sales accounted for nearly $32.8 million of that.
Expenses were just over $36.6 million, with electric transmission and distribution making up $32.2 million.
The water and sewer department saw expenses exceed revenues by approximately $270,000 in 2017. A rate increase has been proposed but did not move forward to the city council as expected in May or June.
The two-stage increase would help pay for $17.2 million in upgrades to the wastewater treatment facilities, which were approved by voters in 2012 to meet new regulations from the Missouri Department of Natural Resources.
The average residential bill will increase from $16.56 per month currently to $28.45 per month by the end of construction, Bach has previously told the board.
Information was not available at press time concerning when the rate increase will proceed to the city council for approval.
The water and sewer department saw operating revenues of $5.4 million in 2017, compared to $4.9 million the previous year.
Expenses were nearly $5.7 million in 2017 and almost $5.5 million in 2016.
The electric department had an unrestricted net position of nearly $7.6 million at the end of 2017, compared to just over $7.3 million the previous year.
The water and sewer department had an unrestricted net position of approximately $238,800 at the end of 2017, compared to $116,400 at the end of 2016.
Net position takes into account liabilities and assets.