Rolla Municipal Utilities has agreed to purchase the building at 101 and 103 W. 10th Street — the Beger & Bushie Law Offices — with the intent of moving its Engineering Department and some of its billing operation there, RMU General Manager Rodney Bourne told City Council members Monday.
The move to the 12,000-square-foot building will begin “after the first of the year,” Bourne said as the City Council went into closed session.
Bourne said the move would include “about four or five people.” “Our Engineering Department and some of our back-billing office. Not our up-front customer-service people.”
Bourne told council members during the public hearing on the pending sale the agreed purchase price is $410,000, which is less than the building’s appraisal.
Bourne also indicated some of the building would be leased to other tenants.
City Administrator John Butz said the law firm intended to stay in the building for at least another year under the ownership of RMU.
RMU Operations Manager Tom Parker indicated the Engineering Department requires an expanse, because of its equipment, and for that reason it is outgrowing its space at its main office, at 102 W. Ninth, a block away from the new building. The close proximity to its main office is a point that Dr. James Stoffer, President of the Board of Public Works, said was important.
“Our goal has been to stay downtown,” Stoffer said. “It’s a good fit for us.”
Bourne also presented City Council members with the utility’s fourth-quarter report.
For the fiscal year that ended Sept. 30, RMU had an Operating Revenue of $29.351 million, while turning in Operating Expenses of $27.208 million, leaving a tally of $2.142 million in Operating Revenue. Other income sources totaled $778,171 for a net year-end income of $2.921 million.
Bourne reported that Operating Revenues are down $958,027 over 2008, and Operating Expenses are down $910,735 for the same period resulting in a net income decline of $147,866 in 2009 from 2008.
Bourne said after accounting for Depreciation Expense, Capital Expenditures, Power Supply Infrastructure (PSI) Capital Reimbursement, contractor-donated water mains and lease obligations, RMU has a projected change to reserves of $1.779 million.
“When compared to the original fiscal year 2009 budget, the change is significant and by design,” Bourne indicated. “The increase in funds is primarily due to a shift of capital expenses to an outside source of cash (PSI project), shift in Operation and Management expenses to the PSI project, general cuts in Operations and Management and capital projects and a slight lowering of wholesale power costs.”
