AMP budget up for Monday vote
Alameda Municipal Power may have unloaded its troublesome telecom, but that unfortunately doesn’t mean the utility is out of the woods yet, financially speaking. Looks like they will be staring at a $4.5 million budget deficit this year. In fact, they’re anticipating deficits for each of the next five years.
The Public Utilities Commission is set to vote on the budget at its meeting at 7 p.m. Monday in City Hall. The budget document is slated to be up on the utility’s website today. (In the interim, they’ve got budget highlights posted already.) If passed, the budget will go into effect July 1.
This coming year, the utility is projecting a $3.2 million revenue decline, around $1 million in increased power costs and an additional $500,000 in payments to the city, plus increased debt payments. The plan is to cover the deficit with reserves this year.
As far as future year spending goes, the utility’s budget presentation from a few weeks ago does note that AMP’s electric rates are an estimated 20 percent below regional averages and that rate increases will be considered. (On the plus side, the utility’s credit rating and bond rating outlook have improved, which could help them more cheaply refinance existing electric bonds as needed over the next few years.)
While we’re talking budget, Alameda Hospital’s Board of Directors has okayed a budget for next year. Looks like they will have a balanced budget (thanks in part to the hospital parcel tax). Their budget narrative starts on page 74 of the board packet for last week’s meeting.