An unprecedented drop in new home construction has lead to a water revenue shortfall for 2008. Revenues from water hook-up fees paid by builders and developers is nearly $20 million lower than expected. Fewer than projected customers and declining water sales contributed a much smaller amount, approximately $6 million, to the water revenue shortfall. In response, Springs Utilities has identified $53 million in budget cuts across the organization. The water service specific reductions for 2008 amount to $11.3 million. Among the budget reductions: - Water valve maintenance
- Vehicles, equipment and facilities
- 4x10 work weeks for field crews
- Employee training and education
- Community sponsorships and memberships
- Customer information, conservation programs and operations & maintenance
- Funding for contractors and office expenses.
- Several major projects are being deferred or deleted.
- The customer service center will be closed on Saturdays.
- 75 percent of open positions will not be refilled.
To further close the gap between water revenue and expenses, Springs Utilities has proposed a price increase. If approved, average residential customers would see a $4.59 increase to the water portion of their monthly bill, based on average year-round water use of 1100 cubic feet (CF) per month. Depending on the amount of water each customer uses, the increase may be higher in the summer - $6.64 based on 1500 CF, and lower in the winter - $3.16 based on 700 CF. The change would increase the typical 4-service utility bill by approximately 3 percent.
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