IWA re-elects Lindman, adds Cunningham to board
During the Island Water Association’s annual meeting on Monday, shareholders approved the reappointment of Vice President Bob Lindman while electing newcomer Jack Cunningham to serve on its 2010 Board of Directors.
Lindman begins his third term on the five-member board, which also includes President/Treasurer Bill Fenniman, Vice President Bill Carr and Vice President Tim Gardner. Cunningham, who grew up in Indiana and served as Chairman of the Board at Thermo Products, retired in 1998. He is a Firefighter 1 certified, 10-year volunteer with the Captiva Fire Department.
Opening the meeting, Fenniman made light of the recent rainfall.
“We’ve had over 12 inches of rain so far this year. Last year at this time we had one inch,” he said. “That’s really good news for lawns and plants, but it’s bad news for water sales.”
Fenniman also noted that revenues at the IWA were “basically flat.”
Rusty Isler, general manager of the IWA, stated during his presentation that projected revenues in 2010 are estimated at $7.1 million, up from $6.8 million a year ago. In 2008, revenues reported were $5.7 million.
“Everybody is doing a wonderful job at Island Water Association to control expenses and keep things in line,” he added.
Operating costs have varied very little in the past few years, ranging from $4.9 million in 2007 to $4.7 in 2008 to $4.8 million last year. In 2010, the IWA estimates operating costs to be approximately $5 million.
In his PowerPoint presentation, Isler provided a 2010 Cash Flow Overview. After accounting for their projected revenues, operating costs, capital expenditures (estimated at $1.7 million, up from $500,000 last year) and debt service ($700,000), the IWA projects a net loss of $300,000 for the year.
Among the capital expense projects slated for 2010 are the installation of new lines at Sanibel Bayous ($650,000), across the Blind Pass Bridge ($200,000), replacement of the well line along Sanibel-Captiva Road ($310,000), the purchase of Badger Orion AMR meters ($160,000) as well as other projects, products and services ($391,500).
Isler, who was also honored as the first 30-year employee of the IWA, reported that current concerns facing the utility include general inflation, rising energy costs, the need for capital upgrades, health care costs and an aging workforce. In addition, reduced water sales – due to conservation, restrictions and water reuse – is something the IWA will continue to keep an eye on.
“We’re now running with 28 people,” said Isler, in praise of his current team. “We were running with 33 people, so everybody’s had to step up to the plate.”