2025 Financial Results
Eastsound Water Users Association ended 2025 in a sound financial position. The Association was profitable for the year, strengthened its cash position, and made significant investments in long-term water system infrastructure, while also managing several expense categories that exceeded the original forecast.
Total revenue for 2025 was $2,672,101, just 1% below forecast. Core water revenue performed well: Water Sales Income was $1,644,730, which was 9% above forecast, and 3rd Party Water Sales were $559,580, or 2% above forecast. These strong results were partially offset by lower-than-expected Membership Fee Income and Other Income, primarily due to the timing of new connections and service activations.
The Association ended the year with net income of $177,657, a 7% net margin. While this was below the forecasted net income of $284,591, the difference was driven by several identifiable expense items rather than weakness in the Association’s core revenue base.
The largest expense variances were in Professional Fees, Taxes, Bad Debt, Insurance, Utilities, and Training. Professional Fees were higher than expected due to unbudgeted legal services. Taxes reflected a tax true-up that is still being addressed, including a credit expected to be adjusted and reapplied in 2026. Bad Debt was a non-cash accounting charge related to receivables cleanup. Utilities were also above forecast due to increased energy costs.
These overages were partially offset by meaningful savings in other areas. Wages and Benefits came in $163,499 below forecast, and the Association also saw savings in Chemicals and Testing, Vehicles, and Debt Service.
One of the strongest parts of the 2025 financial picture was cash. The Association ended the year with $478,835 in cash, up from $124,584 at the start of the year. This improved liquidity placed the Association on stronger footing heading into 2026.
The Association also made substantial infrastructure investments in 2025, purchasing $693,221 in long-term assets. These investments were supported in part by new long-term borrowing. At year-end, total assets stood at $9,714,516, total long-term debt was $997,354, and total equity was $8,417,146.