Some items look good and others cause concern for the Jamestown Public Utilities Board regarding the current proposed budget for the Wastewater and Water Divisions.

Kevin Karr, BPU’s finance and accounts receivable manager, presented the proposed 2025 budget to the two divisions’ boards of directors at the BPU’s October meeting.

Karr began by looking at the wastewater division, with an expected decline in revenue and a slight increase in operating expenses compared to budget, along with a few other items, some of which are concerning.

“What is concerning is the fact that we are looking at a cash flow decrease of over $600,000 from the budgeted total compared to our projections,” Karr said. “We are looking at a net loss of $52,000 projected for 2024. So we are currently projecting a proposed wastewater rate increase of 4 percent.”

The proposal includes looking at capital projects and what can and can’t be done, and that’s something Karr said is still under study. Karr also cited a decrease in water usage in the city, which he said is partly due to Jamestown’s decreasing population, as well as increased costs in many different areas and to the attempt to reduce costs by doing things like expanding vehicle use.

Some other capital projects include pipelines, new sewer systems, meter replacement and sand filter works.

By the time the BPU Finance Committee meets in November, BPU Executive Director Dave Leathers said he hopes they will be able to make enough changes to decrease or eliminate the planned fare increase wastewater.

“We will be looking for grants for the sand filter work,” Leathers said. “We tried this about a year ago and couldn’t get a grant. I thought, we have an active month ahead of us where we’re looking at, are we able to build this budget to not need a rate increase? That’s our goal right now.

After a brief discussion about reduction opportunities for residents, Karr moved on to the projected water budget for 2025, which includes a budget close to what was expected in terms of sales and a decrease in miscellaneous sales compared to the ‘last year. Expenses are lower than expected, with the department generating a projected revenue of $300,000 for the water department.

“We are looking ahead to next year, however, with projections, slightly lower sales figures in 2025, our cash flow, we have big investment plans and we are looking at possible grants for certain items,” Karr said.

There is a borrowing option, but Karr said the current projected water rate increase is 5 percent, which works out to about 80 cents per residential customer per unit. Revenue is expected to be slightly lower than expected, and next year usage is expected to decrease but rates to increase. Miscellaneous revenue is also down compared to previous years.

Karr discussed capital projects for the water division, including trucks and other vehicles, which he said are also being looked at to see what can be eliminated or reduced, such as with wastewater.

Karr then touched on the power budget, discussing some things coming from the state, the power plant — which he said can affect a lot of things, Karr said — and the start of the microgrid project of the city. Karr acknowledged the workforce the BPU has, saying it is great, but saying it is difficult to recruit and retain people in some areas.

As with wastewater and water, Karr said the cost of materials is also increasing for electricity.

“Again, increasing material costs, long delivery times, vehicle replacement costs with the electrification of the vehicle fleet are going to affect all areas of the City of Jamestown,” Karr said.

Leathers returned to the water district’s budget quickly after Karr finished, saying some capital projects could be cut and the hope was to avoid a 5 percent rate increase, but that he felt that an increase in water rates was more justified than an increase in wastewater rates. .