A mild winter in 2011-2012 resulted in an $854,279 drop in revenue for Rolla Municipal Utilities from the previous year, General Manager Rodney Bourne reported to the Rolla City Council at its Nov. 19 meeting.
Meanwhile, expenses rose $312,919 for FY2012 compared to FY2011.
That resulted in operating income of 1,853,588 for FY2012, compared to $3,120,766 for the previous year.
"When combined with miscellaneous income and expenses, RMU experienced a net income of $2,682827, which is down $1,357,970," Bourne noted in his written report to the council.
Nevertheless, Bourne noted, RMU was able to fully fund its reserves, "so we're in a very good financial position."
Bourne said it's been awhile since rates have been increased.
"We haven't raised rates since 2006," he said, so RMU will conduct a rate study over the winter.
He assured the council that no rate increases will take place before October 2013 — "and maybe not even then," he said — but the utility needs to take a look at where it stands in relation to other utility providers, both public and private.
Bourne also reported the following for the fourth quarter of the fiscal year:
• The power supply infrastructure project, while complete, is undergoing replacements of line products cushion grip suspension clamps, due to a design flaw. The utility is being reimbursed for the work, he said.
• Several electrical extensions and upgrades have occurred. For instance, two existing underground feeder circuits at the Downtown South Substation were replaced June 27-Oct. 1. Improvements were also made to distribution lines o Fifth and Sixth streets, Second Street, Williams Road and Adrian Avenue. Work was also done to the Brewer Science facility, the Rolla Public Service Park and the S&T Solar Village.
• Water mains have been installed on 11th Street, Spring Avenue, Hy Point Boulevard, Black Street and First Street.
• Six water taps were completed.
• Six fire hydrants were added.
• A motor failed in Well No. 12 on July 13. The well was back in production on Aug. 6.
• Employees have undergone several training sessions.
• RMU speakers have made presentations at St. Patrick School and Rolla High School.