Springfield Utility Board reveals 2023 audit results and $115M water treatment expansion plans

The December 2, 2024, City Council Work Session and Regular Session in Springfield, Oregon, focused on the Springfield Utility Board's (SUB) financial performance and strategic planning. The meeting began with a presentation from SUB representatives, who provided an overview of their operations, customer statistics, and recent recognitions.

The board members for SUB were confirmed for the upcoming year, ensuring continuity in leadership. Bruce Weber was appointed as the ex officio representative to attend city council meetings, further integrating SUB's operations with city governance.

A significant portion of the meeting was dedicated to discussing SUB's 2023 audit, conducted by Moss Adams LLP. The audit yielded an unmodified opinion, indicating no significant findings, although an initial error regarding revenue recording was corrected prior to the audit's completion. Financial highlights revealed an operating income of $16.8 million and a $23 million increase in net position, attributed to substantial investments in utility infrastructure, totaling over $338 million.

The council discussed the financial implications of SUB's services, including a $534,000 charge for billing services related to wastewater and stormwater management. Council members expressed interest in understanding the actual costs associated with these services to ensure they are not disproportionately benefiting SUB financially.

The meeting also addressed SUB's ten-year plan, which includes the construction of a new water treatment facility, the McKinsey Water Treatment Plant, requiring an estimated $115 million in capital investment. The board plans to explore various funding options, including loans and revenue bonds, to finance this project.

In conclusion, the meeting underscored the importance of financial transparency and strategic planning for the Springfield Utility Board, as it prepares for significant infrastructure investments while maintaining accountability to the city council and residents. Further discussions and follow-up actions are anticipated as the council seeks to balance service costs and operational efficiency.