The 2011 Water and Sewer budget goes on for 13 pages. Here’s a summary I did using their numbers. It shows $12.3 million income and $12 million expenses for a net income  of $300,000. 

Capital Expenditures and Bond Payments are $3.1 million and Depreciation is $3.0 million, total $6.2 million less the income of $300,000 for a net loss of $5.9 million.

 In dollar terms the depreciation is an accounting device, not a loss in dollars for 2011. The “loss” in dollars is $2.8 million. The loss from depreciation is $3.1 million; total loss $5.9 million.

 Where do they get the $2.8 million? From the funds on hand from prior years as well as whatever other money happened along during 2011.   The real loss for the year is the $5.9 million because the depreciation is a loss in the value of the assets.

 The accounting is suspicious to me. There are some questions about how to treat the money they changed people for the West End project. It may be shown for example as a loan which would be a charge the way accounting goes or they can show it as an asset even though they don’t have it. 

 The problem with the Water and Sewer Authority is the secrecy. It serves political purposes if politicians can keep the accounting for the money away from prying eyes who can use it politically against them.

So it’s correct to say the W & S is “Operating” at a budgeted loss of $2.8 million. It’s also necessary to add that the Depreciation is a further $3.1 million for a total projected loss for 2011 of $5.9 million and that everyone who spoke for the administration lied about it at the meeting on Nov 2.

         
WATER/SEWER AUTHORITY P&L BUDGET BY BILL ONEILL

1

  INCOME  

2

    WATER

$4,497,660

3

    SEWER

7,232,805

4

    NON-OPRTNG

567,775

5

    TOTAL, L’S 2+3+4

12,298,240

6

       

7

  EXPENSES  

8

    WATER

(4,030,900)

9

    SEWER

(7,084,350)

10

    NON-OPRTNG

(879,021)

11

    TOTAL, L’s 8+9+10

(11,994,271)

12

       

13

  OPERATING  INCOME MINUS EXPENSES

303,969

14

       

15

    ADDITIONAL SPENDING:  

16

    CAPITAL + BOND EXPENSE

(3,108,635)

17

    DEPREC + AMORTIZD  BONDS

(3,060,000)

18

  SUB-TTL ADDL EXPS, L’s 15+16+17

(6,168,635)

19

       
    2011 BUDGETED (LOSS) L.18 -L13

(5,864,666)

 

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