Utility looks at revenue

by Richard Rolke - Vernon Morning Star posted Sep 4, 2015 at 1:00 AM
It may appear that Greater Vernon Water is awash with cash but revenue flow could slow to a trickle yet. Greater Vernon Advisory Committee directors were told Thursday that utility revenue is up $1.2 million for the first six months of 2015. “Summer started earlier this year and revenue spiked,” said Stephen Banmen, general manager of finance. “There have been concerns about water restrictions and the impact on water revenue and what we’re looking at is revenue is ahead of the game.” Compared to 2014, consumption fee revenue for the first two quarters has gone from $2.8 to $3.6 million, or an additional $800,000. Base fee and other revenue are ahead of 2015 budget projections by $400,000. Higher revenue had been anticipated in the 2015 budget because of a two per cent rate increase. The current trend isn’t expected to continue. “Overall consumption is down for the third quarter so we won’t meet budget projections in the third quarter,” said Banmen, adding that those figures aren’t compiled yet. A report states that if fourth quarter consumption is the same as 2014, third quarter consumption would have to drop 22 per cent from the same period in 2014 to not meet revenue targets. Director Gyula Kiss raised some questions Thursday. “Are we charging too much?” said Kiss, who also wanted to know if a 2016 rate hike can be avoided. No commitment was made either way. “We will have that discussion,” said chairperson Juliette Cunningham of upcoming budget talks.