LUB Approves 2023 Budget

Lamar Light and Power Offices


Light Plant Superintendent, Houssin Hourieh, presented a basic outline for the 2023 budget to the utility board on October 11th, which was also be presented to the Lamar City Council at their Monday night meeting.  The 2023 budget includes total revenues in excess of $18.1 million, with $16.6 million from retail electric sales and the balance from the wind turbine production.  The budget includes annual expenses of $15.6 million which includes $11 million for power supply as well as:

$1,318,455 for personnel costs
$2,180,931 for repairs and maintenance
$386,368 for the Wind Turbine Bond payments
$1,685,806 for the annual Charter Appropriation or 12% of retail sales paid to the City of Lamar.  The payment is reduced by a $350,000 credit transfer from the Lamar/ARPA settlement which brings the percentage of payment to 9.8% The budget allowed $1,831,220 in capital outlays for parts, repairs, equipment purchases and the AMI metering system upgrade.

The Lamar Utility Board approved $1,136,817.54 in purchase orders for a total of $1,151,598.40.  Of that sum, electricity purchases from ARPA for September was an estimated $1,039,424.28, plus $16,400 for roof coating for the light plant’s machine shop.  Bills for the month were $216,749.29.

The board approved write-offs on uncollectable utility bills for 2021 at $31,513.52 which represents 0.23% of the plant’s 2021 electric sales revenue of $13,977,047.  Last year’s delinquent collection was $36,000.  The budget for write-offs is $50,000.  As standard procedure the unpaid bills are turned over to a collection agency. Some bills are as low as $2.20 while the highest for the year is $2,010.38.  The accounts are referred to by number, to maintain confidentiality of the customer.

The line crew completed construction of 675 of primary line at CR PP and Hwy 287, north of Wiley to power a 67hp irrigation load.  The crew also completed the conversion of a power system line north of the Cobblestone Hotel along Sword Street, bordering Scooters.  The new line will power an electric vehicle charging station for from four to six vehicles and Scooter’s existing service.
By Russ Baldwin

Filed Under: Chamber of CommerceCity of LamarEconomyFeaturedUtilities


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