CLEVELAND, Tenn. — Cleveland Utilities’ proposed budget for fiscal year 2011 looks a lot like its 2010 spending plan.
Cleveland Board of Utilities members got draft copies Thursday and are scheduled to vote April 22. The fiscal year begins July 1.
“Our budget is a road map. It’s not an appropriating budget,” Finance Manager Ken Webb said. “We don’t go to a body and ask this many dollars be appropriated to us.”
The draft budget suggests some rate increases and a 1 percent raise for nearly 200 employees plus the potential of 1.5 percent for merit raises.
Factors including weather, the economy, environmental regulations and conservation efforts can affect revenue and expenses.
The proposal predicts electricity usage at a little more than 1 billion kilowatt hours, about the same as the current year. It forecasts water usage of a bit more than 2.7 billion gallons and sewer at a bit more than 1.7 billion gallons, both down slightly from the current year.
The budget projects nearly $88 million in total revenue and about $176,000 in income.
“I believe this is the 23rd budget that I have worked on for Cleveland Utilities,” Mr. Webb said. “I don’t recall electric revenue ever being predicted that weak.”
Water revenue is predicted at a little more than $12 million, with a predicted loss of $309,000. Sewer revenue is predicted at $9.3 million with a loss of nearly $117,000.
PROPOSED RATE CHANGES* Electricity: Pass through whatever is set by TVA.* Water and sewer: $1 monthly increase for about 26,000 residential customers; $5 monthly increase for about 2,900 small commercial customers; $20 monthly increase for about 104 large commercial customers.Source: Cleveland Utilities
“We are not trying to compensate for those losses, but we have a feeling that demand is going to come back,” General Manager Tom Wheeler said. “Not necessarily this year, but in the next two or three years.”
The utility projects its electricity debt will nearly double, from $8.7 million to about $15.6 million. Plans call for it to borrow $7.5 million to pay for the Smart Grid project.
The water division will borrow a bit as well, raising debt from $20.2 million to $22 million, according to the draft budget.
The sewer division’s debt is expected to shrink from $29 million to $27.3 million.
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