2019 Proposed Annual Operating Budget

 2019 Proposed Annual Operating Budget

2018 Budget

The 2019 proposed budget was developed to achieve the outcomes most important to the Utilities Board and customers: competitive utility rates; safe, reliable service and outstanding customer experiences. The budget supports the financial metrics necessary to maintain a healthy “AA” credit rating that helps keep customer rates competitive.

The 2019 budget appropriation is $936.5 million or about $41.8 million (or 4.3 percent) lower than in 2018.  This decrease is primarily the result of lower fuel and purchased power Operations and Maintenance expenditures.

  • Total 2019 Capital expenditures decrease by $11 million, or 5.7 percent compared to the 2018 Approved Budget.
  • Total 2019 Nonfuel Operations and Maintenance expenditures increase by $6.9 million, or 2.1 percent, from the 2018 Approved Budget, primarily due to retaining and attracting a skilled workforce and Information Technology (IT) upgrades.
  • Total 2019 Fuel and Purchased Power expenditures decrease by $41 million, or 17.2 percent, from the 2018 Approved Budget primarily based on lower forecasted gas, coal and market pricing
  • The revenue requirement for water and wastewater services to support continued reliable, quality services has increased by $6.7 million and $1.4 million respectively.

The proposed budget is a responsible approach to address considerable challenges including the need for additional capital improvement investments.

Through an organization-wide effort, Springs Utilities has systematically prioritized all major projects and programs. Only the most critical expenditures are included in the 2019 Proposed Annual Operating Budget.