CLEVELAND, Tenn. — The city’s utility provider’s 2011 budget projects small losses in two of its three service divisions, but includes a pay raise and capital investment in buildings and equipment.
Cleveland Utilities board members approved the budget Thursday for the fiscal year that begins July 1. It includes a 1 percent employee raise, General Manager Tom Wheeler said.
It also includes funding to for the beginning of smart-grid technology that helps monitor and control energy usage, he said.
Board members blamed the $117,000 projected loss in the $9.3 million sewer budget and the expected $309,000 loss in the water budget on slack sales in the slow economy.
The Electric Division’s $87.9 million budget is expected to be about $176,000 over projected expenses.
The budget includes capital spending that was deferred this year because of the recession.
BY THE NUMBERS$87.9 million: Electric services budget$176,000: Projected gain over expenses$12 million: Water services budget$309,000: Projected loss$9.3 million: Sewer services budget$117,000: Projected lossSource: Cleveland Utilities
Capital expenditures of just more than $7.4 million include $540,000 in renovations to the Electric Division building and $451,000 for replacement vehicles.
The Electric Division’s big trucks are on a 15-year replacement schedule, Mr. Wheeler said. Smaller trucks are on an eight-year schedule.
“We postponed any vehicle replacement last year,” Mr. Wheeler said. “But we felt like we couldn’t let it drag out too long. … When the power goes out, like the fire trucks, those vehicles have to roll.”
Other capital projects include upgrades to power lines at $920,000 and an automated meter information system project at $1.6 million.
Ken Webb, accounting division manager, said the budget can be affected by uncontrollable factors such as weather, the economy, new environmental regulations and conservation efforts.
Continue reading by following these links to related stories:
Article: Mouse Creek substation restored by utility crews