Lamar Utility Board Reviews Proposed 2019 Budget for Light Plant

The Lamar Utility Board reviewed their draft proposal for the 2019 budget for the Transmission and Distribution Operation of the Light Plant during their September 25^th meeting.  Estimated revenues for 2019 are $15,859,323 for charges for services, based on sales of electric power to all customers.  Investment earnings show an estimated increase at $50,000, a $14,000 jump over next year, based on market performance.  Total Revenues for 2019 are estimated at $15,961,573.  Superintendent Houssin Hourieh said this basically reflects a 1% increase which is appropriate in light of a stable market that hasn’t shown much growth increase over the past year.

Total Operating Expenses are estimated at $13,625,865 for 2019 which will indicate a Net Operating Income of $2,335,708. Total funding needs for 2019 are proposed at $1,006,000 which includes Underground Distribution Upgrades, Wind Turbine maintenance, vehicles and other equipment.  That portion of the budget calls for a $100,000 Contingency Fund.

In other financial news, purchase orders of $80,044.32 were approved by the board as well as various monthly bills of $1,039,582.62.

The board approved a line extension for VCRAF Agis Vent 50 LLC for their property in Bent County, McClave, just north of Beef City in a five year agreement. This results in a minimum monthly electric charge based on the actual electric usage or the cost of the extension whichever is greater.  The extension payment is 2% of the actual cost of the line extension per month.  That cost is $18,575.64, less $13,926 for 600 feet of complementary line construction which results in a monthly minimum fee of $92.99, but the final accounting will be based on the cost of the extension.  Hourieh explained, ”This is a standard agreement for the light plant.”  He added this is a good example of economic development.  The line is for a 465 hp sprinkler system VCRAF has on site.

The August 2018 financial report showed cash is up $103,810 from July and accounts receivable decreased by $31,213. Total operating revenue for the month is $1,696,963 with operating costs of $1,276,563 resulting in gross operating income of $420,399.  When the non-operating revenues and expenses are factored, there is a net income of $282,040 for the month.  Total operating revenues for the year are $10,603,686 and total operating costs are $8,713,739 resulting in gross operating income of $1,889,947.  When the non-operating revenues and expenses are factored, there is a net income of $803,957, year-to-date.

By Russ Baldwin