GM: KWSC finances looking better
KINGSLAND — Net income for the Kingsland Water Supply Corp. rose last month, General Manager Earl Foster said Wednesday.
“We had a much better month than the previous four months,” he added.
KWSC sold more than 13 million gallons of water and collected $121,170, and after total expenses of $85,232, the corporation showed a net income of $35,938 last month, Foster said.
The increase is welcome news, after the corporation’s books showed a deficit of about $20,604 due to “unusual expenses” in January, as well as low balances the last three months of 2009, he added.
Earlier this month, the KWSC board revised the water utility’s investment strategy and transferred $1 million into bonds managed by Eagle Securities based in Austin, Foster said.
One of the bonds valued at $107,000 may yield interest earnings of up to 16 percent by March 2012, Foster said.
“That would be more than all of what we earned on all of our investments last year,” he added.
KWSC maintenance crews continue to work on the installation of a 12-inch bypass line around FM 2545 in the area of Quail Creek loop, Foster said.
“We are looking at June or July to be finished with it,” he added.
Also, the utility is negotiating the purchase of an easement for a water line on Lago Lane, Foster said.
The easement on land owned by Earl Edwards will cost the corporation about $2,000, he added.
“We are working out the terms,” Foster said.
During the board meeting earlier this week, the board approved payment of $29,982 to Excel Corp. to install a chlorine scrubber at the new water treatment plant.
The board purchased the scrubber for $20,000 from the Stonegate Village Metropolitan District in Colorado, Foster said.
Also, the board approved paying $273,082 to Excel for work on the new plant last month, including the metal frame for the building.
The plant is on track to be finished in July, Foster said.
“They (Excel) are moving along,” he added.
Also for work at the new plant, the board approved payment of $9,929 for S.D Kallman Engineering.
In other business, the board declined to grant a waiver of $10,000 on a capital fee charged to Barbara Richardson, the owner of a sales office in the Lookout Mountain subdivision.