2019 Proposed Budget Reflects Investment in Maintaining Assets

Posted Thursday, March 12, 2020

Water is essential to our daily lives, but few people stop to consider its value and importance, especially when compared to bottled water and other everyday products.

Skagit PUD’s water costs less than a penny per gallon—a true bargain considering the energy and expertise it takes to treat and deliver safe and reliable water to homes and businesses day in and day out.

In order to continue providing safe and reliable drinking water, while maintaining and replacing the PUD’s existing assets, a rate increase of 8.5 percent or approximately $4.32 per month for the typical residential customer is proposed for 2019.

Approval Process

Skagit PUD’s budget process occurs in three stages: Proposed Budget, Work Sessions, and Adopted Budget. The Proposed Budget was submitted to the PUD’s Board of Commissioners at a public hearing on October 1.

During work sessions that follow the public hearing, Board members can direct further changes to the budget. The Adopted Budget incorporates any changes and is binding at the onset of the 2019 calendar year.

After the calendar year begins, new information or changing circumstances may arise that affect the budget. These changes are brought forward to the Board for approval and tracked as the Revised Budget. If mid-year changes are not needed, then expenditures will continue to be governed by the appropriations contained in the Adopted Budget.

The 2019 Proposed Budget incorporates an 8.5 percent rate increase presented in January 2016 as part of a multi-year financial forecast. The proposed rate increase would go into effect January 1, 2019. Total rate revenue is projected to be $24.8 million in 2019.