Hastings Utilities staff told the Advisory Board on Aug. 14 that the department’s Draft 2 utility budget reflects a net increase of $347,000 in requested appropriations compared with the original draft, driven by a revised engineer estimate on an electric project and the closure of a multi-utility arc-flash study.

Larry, the finance staff member who prepared the draft summary, said an updated engineer’s estimate added $280,000 to electric expenditures for a particular project. Staff explained the budget uses a cash-basis presentation for utility appropriations and revenues that will be sent to the state as the utility’s official appropriation.

Staff also described adjustments related to an arc-flash study that had involved multiple utilities: the expense reclassification resulted in increased “outside services employed” line items across utilities—gas increased by $12,000, water by $15,000 and sewer by $40,000—because remaining project expenditures were budgeted to close the project even though work spanned utilities.

When the totals are combined, staff reported the Draft 2 request for expenditure appropriation increased by $347,000. Staff reminded the board that those cash-basis numbers are what the city will report to the state and that the board had already reviewed Draft 1 figures.

A board member asked whether potential revenue from selling sewer water was included; staff said that potential revenue had not been officially approved and, if pursued, would likely be several years out (discussion suggested 2029 as an earliest potential timeframe).

The board voted to recommend the utility budget to the City Council; board members asked staff to continue to provide summaries of changes and to flag any new adjustments before final council action.