Providence Water strives to provide service in the most efficient and cost-effective manner possible. We practice sound financial management whereby revenues and expenditures are carefully planned and monitored to ensure that customers pay the least possible amount for the highest quality water.
The following reports are provided to provide our customers with a glimpse of our financial condition:
Providence Water's strong financial position earned a AA- Issuer Credit Rating (ICR) from Standard & Poor's Rating Services with an outlook of "Stable".
Providence Water is audited annually by independant auditors to report on financial condition, internal controls over financial reporting, and on compliance and other matters in accordance with government auditing standards.
Providence Water net total assets increased from $299 million in fiscal year 2014 to $317 million, or 5.5% in fiscal year 2015. The increase in net assets is in line with the continued improvement and upgrade in the infrastructures. The improvements and upgrade include the distribution pipes, the plant production capacity, aging pump stations, and other facilities.
Providence Water revenue increased by $6.4 million in fiscal year 2015, mainly due to the realization of the full year increase in rates which took effect in mid fiscal year 2014 (December 2013). As a non-profit enterprise, the total revenue realized is used to fund all the activities authorized by the Public Utility Commission, and mandated by the state legislation. These include salaries, fringe benefits retirement contribution, property taxes, services and materials, and the restricted funds for infrastructure improvements and other operations. All combined, total revenue realized in fiscal year ending June 30, 2015 amount to $69 million.
As a result in the adoption of Governmental Accounting Standard Board (GASB) Statement No. 68, Accounting and Financial Reporting for Pension, the fiscal year 2015 net position has been restated by $41 million to include the net pension liability as of June 30, 2014. The result is a decrease in net position in fiscal year 2015 by $25 million or 10.7%.)