City Utilities board approves budget

The Board of Public Utilities approved City Utilities of Springfield's fiscal 2010 budget during its Thursday afternoon meeting.

The budget includes $440.3 million in appropriations, down $68.5 million from the fiscal 2009 budget. Most of the decrease is due to reductions in fuel costs and project delays that don't impact safety and reliability of service.

The budget goes next to Springfield City Council, which is expected to hold a first reading and take public comments Sept. 8, followed by a second reading and vote Sept. 22.

The council also will hear a proposal to increase water rates in fiscal 2011, 2012 and 2013. Rates would increase by about 8 percent a year, meaning the average residential water bill would increase by $1.93 per month for each of the three years.

The increase would generate about $7.5 million for infrastructure improvements and repairs due to the age of certain parts of the water system; about 28 miles of the system's 1,200 miles of pipe is more than 100 years old, and 200 miles of pipe is more than 50 years old.

The water rate increases go along with 2.5 percent increases in natural gas rates taking effect in October and again in October 2010; those increases, the end of a three-year staggered increase, were approved by council in late 2008.