CU considers reduced operating budget

City Utilities of Springfield is in the midst of its annual operating budget review, with reduced receipts and expenditures on the table for the upcoming fiscal year.

The proposed budget projects receipts at $606 million, a decrease of $35 million from the current budget, according to financial documents posted to CU's website. Total expenditures for the fiscal 2022 operating budget are projected at $595 million, a decrease of $68 million.

At 5:30 p.m. today, a joint study session of Springfield City Council and CU's governing organization, the Board of Public Utilities, is scheduled to be livestreamed on the city's website. The meeting serves as a public hearing for the proposed budget.

Board approval of the operating budget is expected Aug. 19, with council slated to hold a first reading and public hearing on Sept. 7 and vote on the budget Sept. 20, according to the CU budget proposal.

In the revenue forecast portion of the proposed operating budget, CU officials said decreased receipts are due to financing proceeds and higher off-system electric sales in fiscal 2021. The drop in total expenditures is the result of decreases in costs for capital improvements and fuels.

For fiscal 2022, CU officials are projecting net income of $26 million.

"Adequate income is very important for the utility to fund annual debt service payments and capital expenditures," officials said in the budget document.