EDITOR’S NOTE: This corrects a story published Thursday, Sept. 3, on Page A1 in the Jefferson County edition. Far from anticipating a large shortfall, the Jefferson County Public Utility District expects a surplus of $883,467 in 2021.
PORT TOWNSEND — The Jefferson County Public Utility District expects to complete its expanded, remodeled operations center in the first quarter of 2021.
The PUD plans to use $1.25 million in capital reserves to finish the $4.25 million project at 310 Four Corners Road, said PUD spokesman Will O’Donnell.
On the operations side, the PUD anticipates a surplus of $883,467 in 2021. Its preliminary 2021 budget has been released for public review ahead of an Oct. 5 hearing.
The preliminary budget adds two new positions, boosts cost-of-living adjustments by 4 percent, increases departmental training budgets by 10 percent and raises fleet expenses by 2 percent for new vehicles and personnel. It also adds $50,000 for tree trimming, boosts the Low Income Program by $100,000 and increases investment in broadband expansion by $150,000.
“We’ve done all that without having to raise rates and while staying in the black,” O’Donnell said.
As for capital expenses in 2021, the PUD plans to spend $6.7 million, with $2.73 million of that coming out of its reserves.
In 2019, the PUD planned to use just more than $4 million from its capital reserves during the current year, with $3 million of that going toward the operations center’s expansion. The rest has gone toward equipment upgrades and improvements to its electrical grid.
“We’ve done a lot of big capital improvement projects and we need to be able to continue to do those projects to increase the reliability of our grid and continue to serve our customers,” he said.
The PUD did not raise water or electric rates in 2019 or 2020, O’Donnell said.
During a Tuesday board meeting, PUD commissioners expressed a desire to avoid raising water and electric rates in 2021 amid an economic downturn caused by the ongoing coronavirus pandemic.
“Now is not the time,” Commissioner Ken Collins said.
However, O’Donnell said the PUD will likely need to raise rates in 2022, specifically for water service.
“The water department is losing money and it shows on our 2021 budget sheet, so that’s where rate increases would need to happen,” he said, adding that increased rates will also allow the PUD to build its capital reserves back up.
In 2019, those reserves stood at $15.4 million. In 2021, they are projected to be at $9.35 million.
Also Tuesday, the commissioners approved an interlocal agreement with Jefferson Communications (JeffCom 911) for shared services.
Streett has since signed the agreement and sent it to JeffCom 911 Director Ted Krysinski for his signature.
Work to establish the agreement began after the PUD started providing JeffCom 911 with digital mapping services using Geographic Information System (GIS) software in mid-July.
The agreement will allow both entities to request service assistance from the other, as long as the other entity has the capacity to fulfill the request and agrees to it.
Also, each agency must submit requests in writing and describe them in detail, including timing of completion and maximum dollar amount for the service.
During previous PUD board meetings, staff and the commissioners discussed the potential for JeffCom 911 to assist the PUD with after-hours calls, but O’Donnell said the PUD has no immediate plans to request those services.
Commissioners also have discussed the potential for JeffCom 911 to provide human resources support from the PUD, which employs one human resources director for its nearly 60 employees. JeffCom 911 has about 17 employees and no one dedicated to human resources.
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Jefferson County senior reporter Nicholas Johnson can be reached at njohnson@peninsuladailynews.com.
