CFPUA mulls cuts after rainy summer led to lower revenue

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Submitted: Tue, 09/10/2013 - 12:09am
Updated: Tue, 09/10/2013 - 12:46pm

WILMINGTON, NC (WWAY) — While many coastal businesses say a rainy summer did not dampen their bottom line, the Cape Fear Public Utility Authority saw revenues recede with the rising water.

“We’ve had such a rainy summertime that our revenues are down,” CFPUA spokesman Mike McGill said. “People just are not using water as much. They’re not using it outdoors.”

June, July and August make up 30 percent of CFPUA’s revenue for the year, and with water usage down across the county during those summer months, CFPUA says it now has to look into scaling back.

“We are two months into the fiscal year. We’ve seen this revenue drop, and we are going right after what we can do responsibly within our budget internally,” McGill said.

Each department was asked to make a four-percent cut for the management team to consider cutting in case these losses continue.

“A four-percent cut is roughly about $3 or 4 million when you look at the financial numbers,” McGill said.

Numbers from last year show the authority lost five percent of revenue down the drain as well. Even with the added loss this year McGill says customers do not have to worry about a rate increase… yet.

“Raising rates is a consideration that we want to make at the very end of this discussion,” he said.

So for now CFPUA will work on crunching numbers to hold off on increasing your monthly bill.

McGill says cutting jobs at the authority is also a last resort to make up for the shortcomings.


  • Guest7969 says:

    I guess the TRUTH finally comes out…they aren’t about conservation AT ALL! They are about CASH! If they were about the conservation of water, this would be a happy fiscal year indeed!

  • Snarkmeister General says:

    Taxpayer, the answer is evident. This “authority” is infested with politicians who have no interest but lining their own pockets.

  • taxpayer says:

    cry me a river! Your inability to manage this boondoggle without hefty rate increases makes me want to throw up. Sadly, the first cuts you’ll consider will be the bottom-rung level employees. Get rid of some of the “chiefs” you have sitting in their offices all day. You don’t need a Chief Information Officer. Capitalize the cost savings over a few years with a few less high-paying positions…voila! Back in the black.

    It amazes me how there were no cost savings realized when the two entities were merged to create this monstrosity.

  • Barbara Anderson says:

    All I know about CFUA rates is where there is a will there is a way where they are concerned.

  • confused1 says:

    Let me get this straight, these people are constantly harping about ways to and the need to conserve water(low flow plumbing fixtures, rain barrels for irrigation etc.)and then when water usage drops they are losing revenue and need to raise rates? They are as bad as the oil companies. What a sad mess this CFPUA is.

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