Revisiting Council Member Pitt’s Numbers

Gene Reeder pulled information out of an analysis by Council member Pitts in a recent publication of The Advocate.  Using numbers supplied by Pitts, it is clear that the budget variance was $48 million.  Hard to believe that such a shortfall was not discussed in depth by the GUS board and the council, with Mr. Fought in attendance.  Also, the CRR credits were/are large relative to energy prices, but Pitts did not disclose why they were not discussed at council.

Kevin Pitts recent article in the Advocate with numbers to backup his analysis and conclusions was excellent. Below are my thoughts resulting from reading and studying the article.

Line Item – Purchased Power Budget vs. Actual Purchased Power, Georgetown Utility Systems
2014 2015 2016
Purchased Power (Original Budget) $36,768,008 $37,073,038 $34,000,000
Purchased Power (Actual) $38,384,323 $40,538,526 $42,622,904
$s Over Budget $1,616,315 $3,465,488 $8,622,904
% Over Budget 4.40% 9.35% 25.36%
2017 2018 5 Year TOTAL
Purchased Power (Original Budget) $38,000,000 $44,000,000 $189,841,046
Purchased Power (Actual) $52,526,535 $63,633,139 $237,705,427
$s Over Budget $14,526,535 $19,633,139 $47,864,381
% Over Budget 38.23% 44.62% 25.21%

My Observations…

As the $s Over Budget and % Over Budget Increased in 2014, 2015, 2016, 2017 and 2018, where was the city council’s OVERSIGHT? Why were Purchased Power Budget’s adopted that were less than the previous year’s Over Budget Purchased Power Actual in 2014, 2015, 2016, 2017 & 2018?

Since CRR credits of $22,079,147 were more than the $15,102,154 of the total operating profit for years 2014 – 2018, this account deserves council’s focused attention due to its amount. Why was this account budgeted for only 2017 and 2018 when there were CRR credits (Actual) entries for 2014 – 2018?

GUS charts

Meanwhile, another Georgetown resident had their go at  the math as well, with another detailed analysis that warrants a look. See:

Lot’s of unanswered questions – will we ever get to the bottom of this?