Lamar Utilities Board meeting of October 14 includes 2026 budget report

The Lamar Utilities Board met Tuesday, Oct. 14 for a regular bi-weekly meeting.  Minutes from the September 23, 2025 meeting were approved, as were purchase orders 2025-00383 through 2025-01005.  Of the $1,130,099.08 in purchase orders, $1,104,685.80 needed board approval.  Large purchase orders for this period of time included $96,484.02 to ARPA for estimated September power purchase, $78,237.84 to CIRSA for 4^th quarter property insurance and $10,993.06 to T&R Electrical Supply for a padmount transformer.  Bills in the amount of $258,811.99 were approved for payment.

Due to the continued Tyler software conversion, there were no financial reports for July, August, or September.  Bid #2070 for line material and hardware was awarded to Western United.  Of the four returned bids, Western United’s bid was considerably lower than the other three and had a short turnaround time.

To be in compliance with Colorado Revised Statutes, auditor Ron Farmer has requested that the board approve a supplemental budget that includes a beginning and ending fund balance.  The 2025 (Supplemental) budget presented for board approval indicated the beginning and ending fund balances as requested.  All revenue and expense figures have been moved to their designated sections.  There were no changes to any approved budgeted amounts.  This change in format should make it easier to compare with the audit.  Failure to approve the Supplemental 2025 Budget would cause an unfavorable footnote disclosure in the 2025 audit and the board voted to approve it.

The 2026 Budget Report was also presented at the meeting, along with a letter from Superintendent Houssin Hourieh that was presented to Lamar City Council at their October 13, 2025 meeting.  The letter references Article XI of the City of Lamar’s Charter which states that a budget shall contain the recommendations of the Utilities Board. The proposed budget for 2026 determines the revenue requirements needed from electric retail sales consisting primarily of transmission, distribution, and wind power generation activities.  The 2026 budget proposes total operating expenses of $17.5 million which includes $9.4 million for power supply.  Additional expenditures include:

• $1.5 million for personnel costs.
• $2.8 million for repairs and maintenance.
• Charter Appropriation of $1,758,519 which is the full 12% of retail sales as allowed by the Charter.
• $1,439,500 in capital outlays which includes $200,000 in contingency funding, $444,000 in substation and distribution line work, $100,000 for wind turbine parts, $50,000 for vehicles, and $645,500 for miscellaneous other equipment that includes completion of the advanced metering infrastructure (AMI) system upgrade, the first phase of the 4kv feeders and switchgear upgrade, and distribution system transformers.

The letter continued by saying “The proposed 2026 budget reflects costs of maintaining Lamar’s wind turbines, electric distribution substations and transmission systems.  We are continuing our efforts in exploring options to improve electric system reliability and resiliency by planning and implementing system upgrades that will improve our system efficiency.  We remain focused on our mission: Lamar Light and Power will continually strive to provide reliable power at competitive rates to all consumers and businesses we serve throughout Prowers and Bent Counties.  We will provide professional service through a commitment to excellence and work to maintain Lamar and the surrounding areas as vital progressive communities”.

Uncollectable accounts for 2025 and recommended for write-off totaled $37,160.14, which represents 0.24% of the 2024 electric sales revenue of $15,485,384.  $40,000 was budgeted for write-offs and these accounts have been turned over to a collection agency but have not yet been collected.

Superintendent Hourieh’s System Operative Report stated that with Cross Canyon Engineering on site, the first phase of the 4kv switchgear upgrade was begun.  This phase involved planning and breaker wiring verification to the protective relays control system and meters.  The line crew replaced a failed 25kv single-phase voltage regulator on the east end circuit west of Holly.  The crew also installed raptor protection and upgraded primary wiring to the Holly recloser.  They also completed the installation of 160 feet of 25kv 3-phase line extension that will power a 15 HP irrigation sprinkler at County Road 8 and LL.

By: Barbara Crimond