PUD proposes budgets for 2011

Wahkiakum PUD commissioners continued discussion on their preliminary 2011 budget at their meeting Tuesday.

PUD Auditor Erin Wilson and administrative staff prepared a separate draft budget for each area of operation--the electric system, the Puget Island Water System, and the Western Wahkiakum Water System.

The PUD anticipates total electrical revenues of $3,268,540, a decrease of about $92,000 compared to 2010 annualized revenue. The total cost of purchased power plus taxes is also projected to drop, from $1,533,359 to $1,522,125. Expenses total $1,744,456, leading to an estimated positive cash flow of $1,959, a decrease of over $200,000 from this year.

Budgeted capital improvements for the electric system total $272,000. This includes a new excavator, engineering costs for the proposed Cathlamet substation, a share of the cost of new billing software, building maintenance, and purchase of a water truck (as a loan to the two water systems).

For the Western Wahkiakum Water System, estimated revenues have increased from $213,314 to $242,400, but increased tax payments and a $20,000 increase in expenses from $220,311 to $240,961 will cause a negative cash flow of $10,411 for the year.

So far this year, the PUD hasn’t spent any money on capital expenditures for the Western Wahkiakum system, but $28,970 is budgeted for 2011. These include $10,000 for a required water system plan, repairs to the Malone Creek reservoir inlet/outlet pipe, a repayment to the electric system for half the cost of the water truck, and a portion of the cost of new billing software.

Estimated revenues for the Puget Island water system total $314,550, which is $27,000 greater than the annualized revenue for 2010. Estimated expenses have decreased from $252,446 to $228,758 – the lowest since 2007. Although expenses have decreased and revenues have increased, a negative cash flow of $14,408 is projected due to tax payments and purchasing water from the town of Cathlamet.

Projected capital expenditures of $11,970 include the system’s portion of billing software and hardware costs and repayment to the electric system for half the purchase price of the new water truck.

Wilson reported that their office should have the capability to take credit card payments within several weeks and that the cost of processing credit cards was already included in the 2011 budget.

Commissioners will return to the budget work at their next meeting on November 16.