LOWELL -- Beaver Water District operation and maintenance costs are expected to increase more than 8 percent in fiscal 2019, the chief financial officer said Thursday.
The cost of personnel, chemicals and power use combined make up 73 percent of the operations and maintenance budget, Adam Motherwell told district board members at their monthly meeting.
The operation and maintenance fund for 2019 is projected to be $13.7 million, which is a 8.3 percent increase from the previous year, Motherwell said.
Increases occur when more water is being produced, there's an increase in chemical prices and there's more personnel costs, he said, adding all three are applicable.
The district's fiscal year begins Oct. 1.
"Normally, it's down, close to the rate of inflation or a little less," CEO Alan Fortenberry said Thursday afternoon.
The personnel costs are projected to increase to $386,794, or a 9.1 percent over the previous year.
The increase comes from the district creating a three-person Information Systems Department, which the board approved in July. The creation of the department required two new positions to be added to payroll, Fortenberry said.
The budget also includes an average 3 percent salary increase per employee, according to last month's meeting minutes.
Chemical costs are projected to increase to $338,761, or a 13.9 percent more than the previous year, according to meeting documents. That rise comes from the projected increase of 2.5 percent in water production as well as the price and volume increases of needed chemicals, Motherwell said.
The power and generation cost is anticipated to increase 5.6 percent, according to meeting documents.
The total revenue anticipated for fiscal 2019 is $26.8 million, which is 3.9 percent higher than the previous year.
NW News on 08/17/2018