The Kansas City, Kansas, Board of Public Utilities approved a $348.4 million budget for 2021 at a Wednesday night Zoom meeting.
Lori Austin, chief financial officer, said the budget is almost 7 percent below 2020 levels. The 2020 adopted budget was $373.2 million.
According to Austin, the BPU would continue to improve efficiencies, reduce costs, assist and support community partners and meet and prepare for future customer growth while maintaining customer service and improving the quality of life in the community.
A BPU spokesman stated the 6.6 percent reduction is mostly the result of reduced fuel efficiencies.
Bill Johnson, BPU general manager, said at the 6 p.m. meeting that they have been working through the second half of the year to prepare the budget for next year. He said they will have to get through the current situation, gradually make progress, get through projects and improve reliability and service to the community.
The budget is $24.8 million less than the 2020 adopted budget. The biggest difference was in the operating budget, down $14.5 million from 2020.
The board voted unanimously to approve the budget.
According to Austin, the major goals and priorities for BPU in 2021 will be:
• Provide cost effective, safe and reliable utility services, including efficient operation of electric and water production facilities.
• Remain focused on updating policies and operating procedures as needed to meet the requirements of our broad customer base. Put in place initiatives to make information and services more readily accessible. Ensure the use of industry best practices in achieving these standards.
• Ensure continued fiscal sustainability by effectively managing debt service coverage, cash-on-hand, and credit ratings through open and transparent fiscal and budget policies.
• Encourage strategic alliances and supporting expansion opportunities that benefit the utility and the community. Supporting economic development and retention and growth in the service area with other community partners.
• Ensure electric and water production and delivery systems are adaptable to support changes in future supply sources. Operate and maintain all utility assets in a safe, reliable, and cost-efficient manner, while working to prioritize future replacement projects
• Continue to support and champion renewable energy (such as wind, community solar) while evaluating future generation mix opportunities to ensure sustainable energy usage opportunities for our community. This includes continuing to monitor, evaluate, and address changes in all environmental regulations.
• Promote ongoing energy and water efficiency initiatives through customer education, community outreach services, and targeted programs.
• Identify and encourage usage of innovative technologies, implementation of utility wide reliability standards, and development of a safety-conscious workplace that ensures continued high-quality utility services.
• Continue to focus on corporate reporting programs including data analytics and operational performance metrics. Ensure utility compares favorably with other peer municipal utilities within the region.
• Continue to focus on employee training and development. Improve utility recruiting efforts to improve employee qualifications and performance
BPU member Tom Groneman thanked the staff for submitting a budget that reflects these trying times and holds the line. The 7 percent reduction was quite a remarkable accomplishment and was really needed, he said.
BPU member Mary Gonzales thanked the staff for presenting and preparing the pared-down budget, and said she was looking forward to 2021 as a better time for all.
BPU member Rose Mulvany Henry thanked the staff for working as hard as they did to deal with some very difficult circumstances and still help meet the financial and fiduciary goals they have.
Moratorium on utility disconnects
Johnson said he announced earlier Wednesday that the BPU would cease to disconnect utility services until March 30, 2021.
He said he understands that the public is having to suffer through the pandemic, and the BPU is trying to do what it can and assist the public.
Mulvany Henry commended BPU’s leadership for coming to that decision.
“I know it’s not an easy one to make,” she said. “It’s important for BPU to meet its customers where they are.”
Johnson said the BPU staff is part of the community and tries to assist where it can.
“There are people needing assistance and we’re glad we can offer this kind of support,” he said.
Dustin Hare of Rent Zero Kansas, an activist group working on ending utility disconnects, thanked the BPU for suspending disconnects and said it would help so many people in Wyandotte County.
Also, Hare questioned the BPU’s statement that United Way still has funds available for utility assistance. He said he has been working with people who called United Way and were getting turned away.
Johnson said he visited with the agency over the past few days and was told there was still utility assistance available, and he would visit with them again and have another conversation.
State Sen. David Haley, D-4th Dist., who also spoke as a visitor, applauded the BPU’s decision on the moratorium on disconnections. He also said there are some Wyandotte County residents who need to be reconnected. He asked the board to be compassionate to fellow Wyandotte Countians. A lot of people have been hurting with policies that do not allow for reconnections at this time, he said.
Zack Pistora, lobbyist for the Kansas Sierra Club, said he appreciated that the BPU now has a moratorium on disconnects. He said the Sierra Club has been working on the issue since July to make sure residents have a level of protection on utilities.
He said work needs to be done to get those who were disconnected previously to be reconnected right away, especially in the winter.
Report on Argentine water reservoir
In other action, the board heard a report on a new Argentine water storage reservoir. The new 7 million gallon reservoir will allow the BPU to have more water storage capacity, according to Chris Stewart, BPU civil engineer.
An Argentine reservoir was removed from service in 2011 because of structural deficiencies, according to Stewart. A Burns and McDonnell study recommended a new 7 million gallon reservoir, he said.
The estimated cost of the reservoir is $10 million, he said, and it would be projected to go online in May 2023.
Water operations director retiring
In other discussion, Johnson honored James Epp, BPU executive director of water operations, who is retiring in January. He has 31 years of service with BPU, and received several awards from the American Water Works Association.
Epp said he appreciated all the mentors he had in his career and the support he received from board members. He expressed regret at not being able to see people now because of the pandemic, and expressed the desire to get together at some time in the future, when it is over.