Title
Department of Public Utilities FY2022 Budget Presentation
Recommended Action
None - discussion item only. Budget will be presented in March for approval.
Staff Recommendation
None - discussion item only. Budget will be presented in March for approval.
Body
Attached is the proposed budget for FY2022. Last year was a two-year budget cycle in which the then current year (FY21) actual budget and a projection for the subsequent year (FY22) was presented. This year that second-year budget is updated and considered for approval.
The FY22 expenditure budget overall as presented is $21,530,836 higher than the FY22 projection presented last year, primarily because of the re-budgeting of several projects in FY22 that could not be completed in FY21, due in large measure to work restrictions related to COVID; some additional projects scheduled due to the availability of very favorable financing options; and projected increases in costs of purchased commodities (electricity and gas). Specific re-budgeted items will be discussed in the sections below.
Referring to the summary tab on the Funds Flow worksheet attached, the overall budget shows a modest decrease from FY21’s approved budget to the FY22 proposed budget. This is primarily because of the wastewater treatment plant loan funded project included in the FY21 budget, which is not included in the FY22 proposed budget. As noted above and will be discussed further in the sections below, however, there are some new projects budgeted in FY22 which somewhat offset that reduction, but which are also shown funded through other financing, as opposed to directly through rates. By subtracting off those projects, re-budgeted items, and increases to commodities, which we have no direct control over and which, for the most part, are passed through to the end users, we have a true comparison of operating and Capital budgets for the two years. As shown, FY22 is budgeted $898,607, or 1.39%, higher than FY21, whi...
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