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 independent 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 $468 million in fiscal year 2018 to $493 million, or 5.3% in fiscal year 2019. 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 $10.2 million in fiscal year 2019, mainly due to the full effect the increase in rates which took effect in February 2017. 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, 2019 amount to $72.3 million.
The Providence Water Net Position changed from $276 million in FY 2018 to $286 million in FY 2019. Part of this 3.6% increase is due to an increase in revenue, achieved through a rate increase approved in February 2017 and the January 2017 merger of the East Smithfield Water District with Providence Water.