Some items are looking good and others are cause for concern for the Jamestown Board of Public Utilities in regards to the current proposed budget for the wastewater and water divisions.

Kevin Karr, BPU finance and customer accounts manager, presented the proposed 2025 budget to the board for these two divisions during the October BPU meeting.

Karr began by looking at the wastewater division, with an expected decrease in sales revenue, and a slight increase in operating expenses over budget, along with a few other items, including some that are a cause for concern.

“What’s concerning is the fact that we’re looking at a cash decrease over $600,000 from our budgeted total to our projection,” Karr said. “We’re looking at a 2024 projection of a net loss of $52,000. So we’re projecting at the moment a four percent proposed rate increase for wastewater.”

The proposal includes looking at capital projects and what can and cannot be done, and that is something Karr said is still being looked at. Karr also discussed a decrease in water usage in the city, which he said is in part due to Jamestown’s decreasing population, along with the increase in costs in many different areas and trying to reduce costs by doing things like extending the use of vehicles.

Some other capital projects include sliplining, new sewer systems, meter replacements and sand filter work.

By the time the BPU Finance Committee meets in November, Dave Leathers, BPU general manager, said he hopes they are able to make enough changes to decrease or eliminate the projected wastewater rate increase.

“We will be seeking grant money for the sand filter work,” Leathers said. “We tried this about a year ago, and were not successful in getting a grant award. I thought, we have an active month in front of us where we’re looking at, are we able to build this budget so we don’t need a rate increase? That’s our objective right now.”

Following a brief discussion regarding sliplining possibilities for residents, Karr moved into the projected 2025 water budget, which includes being close to what was budgeted for in sales, and a decrease in miscellaneous sales from last year. Expenses are less than projected, with the department running at a $300,000 projected income for the water department.

“We are looking at next year, though, with projections, sales numbers going slightly down in 2025, our cash flow, we do have some big picket capital projects and we’re looking at some possible grant money coming in for some items,” Karr said.

There is a possibility of some borrowing, but Karr said the current projected rate increase for water is 5%, which is roughly about 80 cents per residential customer per home. Sales revenue is projected to be slightly under the projected amount, and next year there is a projected decrease in usage but an increase in rates. Miscellaneous revenue is also down compared to previous years.

Karr discussed capital projects for the water division, including trucks and other vehicles, and which he said is also being looked over to see what can be eliminated or decreased like with wastewater.

Karr then went into the electric budget, discussing some things coming down from the state, the power plant – which he said many things can affect, Karr said – and the beginning of the city microgrid project. Karr recognized the workforce the BPU has, saying they are great, but saying it is hard to recruit and retain people in certain areas.

Similar to wastewater and water, Karr said the cost for materials is increasing for electric as well.

“Again, the costs of materials are going up, long lead times, vehicle replacement costs with the electrification of the vehicle fleet is going to affect all areas in the city of Jamestown,” Karr said.

Leathers went back to the water district budget quickly after Karr finished, saying that some capital projects may be taken out and the hope was to avoid a 5% rate increase, but that he felt a water rate increase was more justified than a wastewater rate increase.