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St. James utility board forwards budget adjustments to council after revenue shortfalls
Summary
The St. James Utility Board voted to recommend a package of budget adjustments — including a $131,011 solid-waste revenue recognition and lowered electric revenue estimates — to city council after staff reported commercial electric collections well below budget and opened a meter/consumption investigation.
The St. James Utility Board voted unanimously to forward a set of budget adjustments to the city council after staff described unexpectedly low electric revenue and proposed recognizing extra solid-waste revenue.
Leanne, a city staff member presenting the utility fund summary, said the board should increase anticipated solid-waste revenue by $131,011 to reflect rates already adopted and the timing of collections. "The revenue that we are anticipating to receive would be an additional 131,011," she said. The board moved and seconded a resolution recommending the adjustment and related budget amendments to council.
The action followed a longer briefing on the electric fund. Staff told the board that residential electric revenue was tracking roughly as expected but commercial and industrial revenues lagged. Leanne said commercial collections were "only at 900,000" after seven months, compared with a roughly $2.5 million commercial budgeted figure from the prior budget cycle. "Our revenue went down substantially, and we're not exactly sure why, but we're digging into it," she said, noting several possible causes.
Staff and consultants will investigate suspected metering or data issues. Board members and staff discussed technical checks of three-phase multipliers, possible loose wiring, and whether data transfers between customer service and the ERP could have suppressed reported revenue. Leanne said the city's rate study consultant, Toten Associates, and additional consumption reports will help diagnose the shortfall.
Board members also discussed the coming Amazon facility and whether its operations will materially affect year-end revenue. Staff said Amazon is not expected to be fully online until mid-summer and that any revenue from the site would help but might not fully close the current gap.
The board approved by voice vote forwarding the budget package — including the solid-waste revenue recognition and related technical work requests for the electric fund — to the council for formal action. Staff said the council will consider the items at upcoming meetings in May. The board’s action was advisory; final budget authority rests with council.
