Lamar Utility Board Finalizes 2024 Budget and Write Offs

The Lamar Utility Board finalized its approval of the 2024 budget.  Revenues are expected to be $15.7 million with $14.3 million from retail electric sales and the balance from wind turbine production. Operating expenses are estimated at $14.2 million which includes $9.3 million for power supply.  Other expenses include $1.400,516 for personnel costs, $2,297,867 for repairs and maintenance and $1,719,400 in capital outlays.   Light Plant Superintendent Houssin Hourieh, presented the budget to the Lamar City Council Monday, October 9^th for its general information update.

The board paid purchase orders totaling $1,072,442.34 of which $1,052,707.04 required approval.  This included $1,007,038.73 for monthly power purchase estimates from ARPA, Arkansas River Power Authority.  Superintendent, Houssin Hourieh, explained $5,456 was for truck repair parts, $20,064 for pipeline insurance and $15,225.25 for a master radio upgrade.  $234,734.66 in monthly bills was also paid.

The board approved the write-off for 2023 bills amounting to $29,146.72 or .2% of the 2022 electric sales revenue of $14,128,505.  The annual budget write-off for uncollected bills is $50,000 and historically, the percentages of uncollected bills has been decreasing.  The delinquent accounts go to a collection agency for action each year.  The four highest for the year are all just under $1,200.  The board briefly discussed finding an investment source which could provide up to 5% interest on available funding.  One stipulation would be the ability to withdraw any sized account as needed without a penalty.  More action will be taken at a future meeting once various aspects of the suggestion are considered.

Superintendent Hourieh’s system operating report noted the line crew upgraded a 4kv overhead feeder in the alley between Main and 5^th Street from Hickory to Washington Streets.  Poles were replaced as well as crossarms, insulators which will help improve efficiency and reliability.  A new master radio reporting system was installed which will improve SCADA system reliability for meter reading.  Due to supply chain delays, it took over a year to receive the new radio system which was budgeted in 2022.

By Russ Baldwin