2022 Proposed Budget Available for Public Comment

Posted Thursday, October 21, 2021

In 2019, Skagit PUD engaged the services of FCS Group to complete a cost-of-service analysis and water utility rate study. The study provided the PUD with a sustainable, multi-year financial plan that meets the projected total financial requirements of the utility.

Financial needs include expenses to operate and manage the water system, capital project funding, funds for new and existing debt obligations, and the fiscal policy goals established by the Board of Commissioners.

The 2022 proposed budget was submitted to the board at a public hearing on October 12. The budget uses FCS Group’s rate study recommendations of a 5% increase in base water rates or approximately $3.08 per month for the typical residential customer.

The rate increases take effect for all bills generated January 1, 2022, and would increase projected revenues by nearly $1.3 million. The funds will support the next 10 years of the Capital Improvement Plan and the related debt service. The PUD anticipates that capital contributions and non-operating revenue may be lower next year as the economy struggles with the pandemic and supply chain issues.

“Through our recent strategic planning efforts and the updates to our financial plan and rate study, the PUD is well-positioned to make significant improvements to our infrastructure,” General Manager George Sidhu said. “While continuing to support the growth that is happening at the local level.”

budget Process

Skagit PUD’s budget process occurs in three stages: Proposed Budget, Work Sessions, and Adopted Budget. During work sessions that follow the public hearing, board members can direct further modifications to the budget. The Adopted Budget incorporates any changes and is binding at the onset of the 2022 calendar year.

The Board of Commissioners hold open meetings on the second and fourth Tuesdays of each month at 4:30 p.m. in the Aqua Room, where members of the public can observe and participate in decisions made by the commission.