Chestermere Utilities Incorporated (CUI) has made some significant accomplishments in 2013, posting a growth in asset value while delivering several projects under budget and ahead of schedule.
According to a recent press release, the municipally-owned corporation which was established in 2011 by the Town of Chestermere, increased its asset value by almost $5 million in 2013, while posting a net loss of about $26,000, essentially reaching a break-even position for years ahead of initial forecasts.
“When we originally decided to spin off the utilities and create CUI, we didn’t forecast that we would be in a positive position until 2017 so we are proud of the fact that we are already ahead of schedule and that we have already addressed efficiencies,” says Dr. Catherine Connolly, CUI’s Board Chair.
Using a unique business model, CUI’s mandate is to break even on utility services for residents of Chestermere, meaning the organization does not generate revenue through rate increases.
“We have a serious commitment not to make a profit off the backs of residents, we cannot raise rates just to be profitable,” Dr. Connolly states.
The corporation generates revenues through consulting and management fees, and aims to increase shareholder value through efficiencies and consolidating costs across an expanded customer base.
“With a solid year behind us, CUI is poised for continuous growth,” said Dr. Connolly, “Having strengthened our governance and consolidating operations, CUI will continue to pursue opportunities to partner with like-minded communities interested in leveraging CUI’s investment in achieving its independent status, reaping the benefits provided by the corporation.”
Dr. Connolly adds that she feels the Town of Chestermere deserves a lot of kudos for being leaders in the process taking the innovative step to managing its water and waste water operations when it chose to separate utility operations from the Town of Chestermere.
“We [CUI] provide cost transparency; autonomy from the City of Calgary; financial flexibility for the Town of Chestermere; management excellence; and growth, with a sustained competitive advantage!” explains Dr. Connolly.
“Chestermere Utilities Incorporated really is a ‘win-win-win’ for the Town of Chestermere, its residents, and taxpayers,” said Mayor Patricia Matthews. “Residents needs are well-served, taxpayers are not required to fund future infrastructure growth and development, and Town Council may receive future dividends as the major Shareholder.” Matthews noted that while rates increased in 2013 due to the cost increases from the City of Calgary, these were passed through to consumers without markup by the company.
Due to an average 10 per cent cost increase in 2013 from the City of Calgary for water, wastewater, and landfill charges, CUI was forced to increase its service rates.
In addition to the favourable financial results in 2013, the corporations saw significant achievements in other areas including the completion of several capital projects like the Great Plains Sanitary Trunk and Lift Station #10 upgrade, both of which were finalized under budget and within schedule.
Looking ahead to 2014, CUI will focus on four growth pillars including: (1) service excellence, providing value to customers; (2) becoming widely views as a responsible employer with an admirable work culture; (3) being a leader within the community; and (4) pursuing growth in both regulated and non-regulated business, aligning with its core values and business objectives.
CUI provides safe, reliable, and efficient services to the rate payers of Chestermere in a cost effective manner. Their services to the residents of Chestermere include water; wastewater; storm water; solid waste management; and recycling depot services.
For more information on CUI, visit the website at www.cuinc.ca.
