2020 Annual Operating Budget

 2020 Annual Operating Budget

The 2020 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. On Nov. 12, 2019 City Council approved the 2020 budget.

The 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 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 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 2020 Annual Operating Budget.

2020 Proposed Budget