November 20, 2019

Madison electric utility proposes $11.19 million budget - Daily Leader Extra : Local News

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Madison electric utility proposes $11.19 million budget

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Posted: Tuesday, September 3, 2019 3:52 pm

The Madison Electric Department has delivered a preliminary proposal to city commissioners for its 2020 budget that would have the utility operating with $11.19 million in funding.

The budget proposal for next year is a 1.44% increase, about $158,900 more than the $11.03 million allocated to the electric utility in the 2019 budget.

In 2020, the Electric Department expects to spend $5.58 million to purchase power, a 1.7% increase from this year. The increase amounts to $92,000. The department budgeted $5.49 million to purchase power in 2019.

The electric utility proposed allocating $1.032 million in 2020 to pay for the transmission of electrical power. Utility officials expect transmission costs to increase by $32,000, or 3.2%. They had budgeted $1 million to pay for transmission costs in 2019.

The Electric Department proposed allocating $715,000 to pay for transmission and distribution upgrades in 2020. The city electric utility wants to budget $520,000 to pay for electric grid upgrades and another $195,000 to pay for another assorted utility upgrades. The amount is a 10% increase, or $65,000.

The department wants to budget $320,000 to pay for capital-outlay expenses related to machinery and vehicles, a $70,000 increase from its 2019 budget. The officials would take $150,000 from reserves to help pay the expenses.

Among other capital-outlay expenses, city officials are proposing to spend $155,000 related to buildings and structures, a decrease of about $70,600 from the 2019 budget. They are proposing to spend $100,000 from reserves for those expenses.

Madison officials have proposed budgeting $275,000 in 2020 to pay off bond principal, the same amount allocated in the 2019 budget. They are also proposing budgeting $91,500 to pay bond interest, which again is the same amount.

The Electric Department has requested that the city budget $190,000 for the purchase of electric wire and cable in 2020.

The department proposed budgeting $90,000 next year for street-lighting improvements, an increase of $30,000. The amount will help pay for LED street lights.

Utility officials proposed allocating $70,000 in next year's budget to pay for improvements to electricity production.

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