ROGERS — The early payoff of 2006 sewer bonds is expected to save Rogers Water and Sewer Utility customers about $366,969, according to the 2014 budget approved by commissioners Monday.
That’s the good news. The downside is capital improvement projects coupled with the bond payoff will lower the utility reserve by about $8 million, explained Joyce Johnson, the utility chief financial officer, Monday during the commission meeting. Currently, there is $31 million in the reserve fund.
The utility’s fiscal year runs from July 1 through June 30. Commissions approved the budget Monday rather than waiting until next month. The water and sewer budget are kept separate, although the sewer revenue is based on the amount of water a customer uses.
“I don’t see any reason to wait,” said Don Kendall, commission chairman. “I don’t think anything is going change between now and next month.”
Revenue for the water utility is expected to be $9.5 million next year down slightly from $9.8 million in 2013. Total 2014 water utility expenditures are projected to be $9.4 million.
“I’m projecting we will have $46,941 in excess revenue next year. It’s not much but it’s better than a loss,” Johnson said.
Water utilities have much the same concerns as farmers, in that the yield of the crop depends on the weather.
“We had a drought last year and heavy water usage. I’ve budgeted on the side of caution for next year. So far we’ve had a wet spring. We could have rain throughout the summer which would reduce our water sales, or it might not rain again until September. There’s no way I can accurately predict the weather for the next four or five months,” Johnson said.
Capital requests for 2014, which range from computer hardware and software, equipment repair, a new vehicle, water line extensions, and several water line relocation projects for street work total $4.8 million. The payoff on the 2006 sewer bond totals $3,599,000, thus the lower reserves for 2014, Johnson said.
Water line relocations for eight street projects, $2.56 million, is the biggest chunk of the scheduled capital improvement projects, according to the budget. Water line extensions planned for next year total $458,000, according to the budget.
Another additional extra expense is that health and life insurance and workman’s comprehensive payments are expected to increase by double digits, according to utility officials.
“Our health plan updates on January 1. I don’t know exactly how much our health insurance will go up because we haven’t sought bids on insurance for next year yet, but I’m anticipating it will rise form 10 percent to 12 percent across the board,” Johnson said.
The revenue for the sewer utility is expected to be $10.8 million and expenditures are projected at $7 million, with $4.2 million devoted to capital improvement projects, which include sewer rehabilitation, city street sewer relocation and sewer main extensions.