Cordell Water Department Running At A Loss

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Financials Show Nearly $50K Loss During Calendar Year 2018

Records provided by the New Cordell Utility Authority show Cordell’s water department lost nearly $50,000 between Jan. 1, 2018, and Dec. 31, 2018. According to the city’s financial reports, Cordell’s water billing during the 2018 calendar year totaled $645,618.21, but expenses were $694,184.90, creating a net loss of $48,566.69. The expenditures do not include expenses for the city’s customer service department, which handles the water, sewer, garbage, and electrical departments, as the department is accounted for as a single cost center for the entire utility authority.

The water department’s single largest expense is 2018 was the purchase of water from Foss Reservoir. In 2018, the city paid $301,956.68 for the water it resold to Cordell ratepayers.

Despite no increases from Foss since 2014, the New Cordell Utility Authority has increased the residential water rates five times, for a total of 42.3 percent on the base rate and 42.4 percent for each 1,000 gallon increment used over the 2,000 gallon base rate. Cordell’s current residential base rate is $15.03 per month for the first 2,000 gallons and then a sliding scale of between $6.31 and $11.91 per 1,000 gallons after, depending on total usage. Users who consume larger quantities pay higher overage costs per thousand gallons.

 

 

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