12.6.06

Board approves 2007 budget

The Metropolitan Utilities District Board today approved the 2007 budget. The budget totals $753.9 million compared to estimated expenditures of $764.3 million in 2006. Revenues and weather-related costs are based on temperatures for a normal year.

It includes a water rate increase of 5 percent, effective January 1, 2007. The average residential customer who uses 110,000 gallons of water per year now pays $185.90. The cost will increase to $195.28 a year. The rate increase will generate an additional $2.7 million a year in revenue.

For the second year in a row, the District will not assess a hydrant tax
which recovered approximately $2 million in 2005.

The average residential natural gas customer also will see an increase of 3.1 percent, effective January 1, 2007, which is comprised of a $2 increase in the customer service charge and a 4-percent increase in the District’s margin.

The natural gas service charge for residential gas customers will
increase from $10 to $12 a month.

The average residential gas customer’s bill will increase a total of $28.45 a year, from $917.45 to $945.90.

The service charge for commercial and large volume gas customers will increase from $15 to $17 a month.

These changes will generate an additional $6.6 million a year in revenue.

A proposed 6.8-percent increase to the capital facilities charges will
generate an additional $0.3 million a year in revenue.

The water department budget totals $173 million compared to an estimated $210.7 million in 2006. The difference is due to a $5 million increase in operating expenses net of interest charged to construction, a $45.7 million decrease in the capital budget, a $4.7 million increase in bond interest costs, and a $1.6 million decrease in bond issue costs.

The water construction fund, earmarked for the $352-million Platte West Project, is projected to have a total of $28.5 million at the end of 2006. This balance will be fully spent in 2007.

The District plans to spend $78.4 million on the project in 2007 for construction of the 100 million-gallon-a-day water treatment plant at 217th & Q Sts. The facility will increase M.U.D.’s water treatment capacity to 334 million gallons a day. The plant is scheduled to go online in 2008. The water department budget also includes $18.4 million for water main installation and improvements.

The gas department budget totals $580.9 million compared to an estimated $553.6 million in 2006. The difference is due to a $20.2 million increase in the cost of gas for resale, a $11.6 million increase in operating and maintenance expenses, a $2.8 million decrease in the capital budget, a $5.9 million increase in the cost of the natural gas inventory, and a $8.5 million decrease in short-term loan retirements.

The combined budget includes an increase in the number of employees from 806 to 827, including 15 positions required to staff or directly support the Platte West facility.

A customer-owned utility, M.U.D. serves more than 187,845 water and 201,357 natural gas customers in the metro Omaha area.

2006 news

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