CU board approves operating budget

The Board of Public Utilities yesterday approved City Utilities' 2013 operating budget, according to an Aug. 23 news release.

The $530.4 million budget represents a $30 million drop from the 2012 budget.

The year-to-year reduction includes a reduced employee head count of 25 positions. During the year, only significant capital projects will remain, including preparation for compliance with the federal Mercury and Air Toxics Standards Rule and work to enhance the water main replacement program. The board yesterday also passed a three-year water rate package that would take effect in October 2013, 2014 and 2015, the funds of which would be used for the water main program, according to a news release.

The 2013 budget includes $495.6 million in expenditures. Budgeted net income for 2013 is projected at $20.8 million, an increase from 2011 earnings of $17.3 million. Net income for 2012 is projected at $6.8 million, resulting from lower natural gas and energy prices that led to lower off-system sales margins and volumes, according to the proposed 2013 budget.

Both the proposed budget and the water rate package are subject to City Council approval. The items move to council's Aug. 27 meeting for a public hearing and first reading.