2020 Proposed Annual Operating Budget

 2020 Proposed Annual Operating Budget

The 2020 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 proposed 2020 budget appropriation is $954.4 million which is 1.9 percent higher ($17.9 million) than the approved 2019 budget of $936.5 million.

  • The primary driver is increased fuel and purchased power operations and maintenance expenses because of planned maintenance activities.
  • Increasing technology investments such as Advanced Metering Infrastructure (AMI), mobile applications and asset management also impacts the 2020 budget proposal.
  • Surplus funds transferred to the City is projected to increase in 2020 with implementation of the second phase of water surplus transfer rate as well as growth. Water is up $1.3 million, electric $1.0 million and gas $0.1 million.
  • Total proposed Labor and Benefits budget increase is 2.1 percent.
  • Capital spending is reduced from 2019 to better align with long-term financial goals.

The revenue requirement for water and wastewater services to support continued reliable, quality services has increased by $7.1 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. City Council is expected to vote on the proposed 2020 budget at their Nov. 12, 2019 meeting.

Through an organization-wide effort, Springs Utilities has systematically prioritized all major projects and programs. Only the most critical expenditures are included in the 2020 Proposed Annual Operating Budget.

2020 Proposed Budget