Financial Condition of Water Company — Excellent #2

In June last year the Board directed our accountant to begin including new financial measures on the monthly report on income and expenses. We quickly saw that our DCOH was much higher than the recommended 90 days:


DCOH jumped from 149 days in June to 219 days in August due to the awesome work of our manager George Burriss and Board Member Dorothy Taylor. They captured and submitted expenses to our insurance company for the $60,000 the company had spent to repair our pumping platform. It had been ripped from its anchors during the October 2018 flood of Lake Travis. We received a $59,000 check in August 2019.

Given so much cash on hand to run the company, the 2019 Board authorized purchase of an $80,000-ish propane generator. This was required by regulators because our system had grown above 250 customers. Check out this video to see the generator pass its first test of running our pumps when after our operator cut the electricity.

This post relates to the first post about NewGen Strategies report because our 2019 Board had invited their Grant Rabon to a Board meeting in May 2019. He helped our Board members understand the value of financial measures in decision making.

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