The $1.2 million decrease in revenue primarily reflects a decrease of $3 million in customer water usage as well as $327,000 lower revenue from real estate operations. The revenue decreases were partially offset by cumulative rate increases of $2.0 million and $67,000 from new connections.
Water production costs for the quarter ended March 31, 2009 were $13.6 million compared to $13.5 million in 2008 despite lower unit sales volume. The increase of about $100,000 in water production costs reflects $794,000 in higher per unit costs for purchased water, groundwater extraction and energy cost and $553,000 in decreased surface water supply, offset by lower expenses of $1.2 million due to lower customer demand.
Non-water production costs for the first quarter were $22.9 million compared to $20.2 million in 2008. The increase of $2.7 million was primarily attributable to an increase of $1.3 million in administrative and general expense, primarily due to pension funding and legal and administrative fees related to the closing of the Bulverde, Texas acquisition which was finalized in the first quarter. Other increases were $700,000 in taxes other than income tax, $488,000 in depreciation expense and $166,000 in all other expenses. Income tax expense for the first quarter decreased to $101,000 in 2009 from $1.8 million in 2008.
The directors of SJW has declared a quarterly dividend on common stock of $0.165 per share. The dividend is payable on June 1, 2009 to shareholders of record on May 18, 2009.
