Owensboro Municipal Utilities proposed their budget for the 2023 Fiscal Year, and the overall numbers are expected to remain close to what was projected during their October 2021 meeting.
In the General Manager review, outgoing GM Kevin Frizzell noted an $881,000 budget reduction.
Laura Chapman, Manager of Planning for the Finance and Accounting Department, said that the water and electric system’s base rate will remain unchanged until FY24 when 5%+ increases will likely be needed each year — based on the increasing trend of inflation on expendables.
The reductions largely are found in the Customer Service and General & Administrative department seeing a $457,000 drop. Meanwhile, Delivery is seeing a $310,000 reduction and Production a $114,000 reduction.
The proposed budget has a 5% increase in employee wages. Members of the Commission board are interested in seeing a 6% increase as well. The full numbers will be presented before the May regular meeting when a decision will be made on both the pay increase and the budget as a whole.
OMU is also seeing community investments bringing in $140,000 — coming from different organizations including the Greater Owensboro Economic Development Center, United Way, Salvation Army and other donation places.
The budget also assumes a total of $21.8 million in the decommissioning expenses for the Elmer Smith Station. The majority of the expenditures come from the stack removal and demolition sitting at $7.8 million.
Frizzell said that the stacks are expected to be taken down in late summer or early fall of this year.
Heading into the water system, it is assumed that 4.150 million gallons of water will be produced. The net operating revenue for water is expected to be $6 million while expenses are expected to be $9 million.
The Total General and Administrative Expense is budgeted for $12.7 million, which is an increase of $408,000. Total Employment Cost is going up about $1.3 million to $24.15 total.
As it comes to the Delivery Department, the net budget will be $6.6 million. This includes transmission lines, streetlights, reconductor lines and more projects.
Routine projects are budgeted for $788,000 — a 23% increase from this current fiscal year. Other notable projects include transmission pole replacement and a new roof at the Delivery Center.
The proposed delivery summary for the capital budget is set for $8.79 million — $6.6 million being electric and water delivery totaling $2.18 million.
The Telecommunications proposed budget is $4.7 million. This will go toward the construction internet system in the Sub J segment in the northwest section of town.
Water Production projects are budgeted for $4.16 million with a focus on 3 carryover projects and 10 new projects. There are 9 capital projects totaling $3.4 million and 4 capitalizing maintenance projects $675,000.
One of the major projects includes the repainting of the OMU water tower on Frederica Street which will cost roughly $600,000.
