Winamac Clerk-Treasurer Melanie Berger reviewed the findings from Umbaugh’s budget report when town council members met last Monday.
The town’s financial advisors at Umbaugh looked at the current rates for the electric, water and wastewater utilities and then provided a projection of whether or not current rates will be able to sustain the accounts over the next five years. They also indicated whether or not the utility would see a positive or negative cash flow.
When it comes to the electric utility, Umbaugh’s analysis found that the current rates are sufficient to pay for the operation, maintenance and planned capital improvements. Additionally, they found the utility will experience a positive cash flow over the next five years.
With Winamac’s wastewater, Umbaugh’s report indicated that the town will see a positive cash flow over the next five years with that utility as well. Berger stated that the $700,000 OCRA grant that was recently awarded for wastewater improvements is providing significant assistance in this area.
The clerk-treasurer added that the current rates are anticipated to cover the cost of operation, maintenance, debt service and capital improvements over the next few years.
On the other hand, when it comes to the water utility, Umbaugh representatives found that there will be negative cash flows over the next four to five years. Clerk-Treasurer Berger said the water project is a major factor in that projection.
She did mention however, the current rate schedule will be sufficient to pay for some operation and maintenance as well as a portion of planned capital improvements. She said that the concern will be keeping operation costs at a low for the years 2019 through 2022. She said she’ll be sure to monitor the utility and assess the potential need for adjustments.
