Comprehensive Annual Financial Report 2007 - MSD

Unrestricted current assets decreased by $11.0 million due to decreases shortterminvestments.Total liabilities decreased by $19.0 million in 2007. This decrease was due toreductions in miscellaneous accounts payable of $6.0 million and bonds payable(current and long-term) of $15.8 million.Capital Assets and Long-term DebtMSD’s net investment in plant, lines, and other facilities increased by $30.8million in FY 2007. Major additions include the completion of $48.3 million ofsewer line installations and $29.7 million of stormwater drainage facilities.Readers are encouraged to review the Comparative Schedules of Plant, Lines,and Other Facilities that is contained in the statistical section of the CAFR foradditional information regarding changes to capital assets. Also, readers shouldreview Note 5 to the financial statements which provides additional informationrelating to MSD’s capital assets.In May 2006, MSD issued $100 million in Revenue Bonds to finance its capitalprogram. As of June 30, 2007, approximately $40.2 million of these bondproceeds remained. The remaining funds are expected to be used for additionalexpansions to the wastewater and drainage systems, plant expansions, floodprotection systems, and other wastewater and stormwater projects. Note 7 to thefinancial statements provides readers with a comparative schedule of long-termdebt outstanding at June 30, 2007 and June 30, 2006.Results of OperationsMSD operates its general activities in accordance with a budget adopted by itsBoard. Furthermore, MSD is required by its Revenue Bond Resolutions to adoptan annual fixed-dollar appropriation budget for its general operating activities.Total Operating Revenues as of June 30, 2007 were $132.4 million compared to$129.8 million for the same period last year, an increase of $2.7 million or 2.1%.During FY 2007, MSD began offering free wastewater and stormwater service tothe Louisville Metro Government. This free service amount to $1.45 million in FY2007.Wastewater Service Charges totaled $96.6 million as of June 30, 2007. Thisrepresents an increase of $2,686,000 or 2.9% from a year ago. Free wastewaterservices provided to the Louisville Metro Government amounted to $1.1 millionduring the fiscal year. The majority of MSD’s wastewater customers are billedbased on the amount of water used. Since substantially all of MSD’s customersare also customers of the Louisville Water Company, this charge is billed andcollected by the Louisville Water Company on behalf of MSD.Stormwater service charges were $29.9 million as of June 30, 2007. Thisrepresents an increase of $1,160,000 or 4.0% from the same period one year13