By MELINDA WILLIAMS
With income nearing $800,000 during the 2012-13 fiscal year, Pepper’s Ferry Regional Wastewater Treatment Authority had “another sound year financially,” according to Executive Director Clarke Wallcraft.
Summarizing an unaudited annual report of the Authority’s finances for the board of directors, he said the Fairlawn plant treated 1.66 billion gallons of influent wastewater during the fiscal year, which ended June 30. That was 164,000 gallons more than was expected when the budget was prepared, thus resulting in more revenue than anticipated.
Wallcraft attributed actual flows being more than anticipated flows to the average five-year rainfall being higher than previous five-year averages and “the fact that significant rain influenced flows in the last half of the fiscal year.”
The New River Pump Station turned a profit for the first time in about five years, according to Wallcraft. The station handled almost 1.4 million gallons of untreated wastewater, generating about $257,000 in revenue. When maintenance and insurance costs are factored in, he said, the station’s profit was around $36,000.
Radford Pump Station pumped about 531,000,000 gallons of untreated wastewater, resulting in a total profit of $16,500. Total revenue from the Radford station was just under $69,000.
According to Wallcraft, the Authority’s long-term liabilities decreased by almost $2.2 million to $9.8 million during the past fiscal year primarily due to paying off a 2010 Bond Anticipation Note (BAN). Wallcraft told the board he is “very proud” the Authority’s long-term debt is now below $10 million.
He said total liabilities and equity was $17.7 million at fiscal year’s end. Although this was a $1.4 million reduction in the “bottom line” for the fiscal year, he said it is “primarily the result of increased accumulated depreciation during the fiscal year, without adding new plant and equipment during the fiscal year … (which) was a calculated decision of the Board of Directors, in that Capital Improvement projects were postponed for the fiscal year to provide funding to pay off the 2010 BAN.”
Wallcraft told the board he applauds its decision to “pay as you go” and pay down the Authority’s long-term debt, saying it is “sound financial planning.”
The Authority’s audit already is underway.
However, Wallcraft told the board, “I feel very confident the numbers you see (in the unaudited report) will be the numbers you see in the audit.” He commended the staff for taking their jobs “very seriously” and seeing that everything is booked properly throughout the year so that generating the report is easier.