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October 3, 2013

Less 2014 revenue, expenses projected for water, wastewater

Budgets leave funds for capital improvement at LMU, superintendent says.

With decreases in projected expenses exceeding decreases in projected revenues for both the Water and Wastewater departments at Logansport Municipal Utilities for 2014, the superintendent says funds will be left over for capital improvements without affecting customers’ current rates.

Projected income for both departments dropped from last year, with the wastewater department coming in at more than $319,000 less than 2013 and the water department coming in at more than $232,000 less than 2013.

Notes accompanying the budgets state the reason for each drop: Water consumption decreased at LMU’s generating plant after the installation of a reverse osmosis unit, a water purification technology that requires less water.

“We essentially lost a huge water customer,” said LMU Superintendent Paul Hartman at a Utility Service Board meeting Monday.

While LMU’s water and wastewater departments may have lost a huge customer, its generating plant lost a huge expense. Hartman said the 2014 budget for the generating plant will be ready by next month’s meeting.

The amount of leachate — liquid pumped out of landfills — that the wastewater department receives to treat is also expected to drop next year, which was cited as another reason for the estimated decrease in the notes accompanying the budgets.

Estimated expenses totaled over $2.4 million less than estimated revenues for both departments combined. The largest figures contributing to this are the $344,960 cut from last year’s water department figures for treatment and purification after the city switched from treating river water to a well system, and the $64,130 cut from last year’s wastewater department figures for anticipated less equipment repair, the notes in the budget state.

With projected revenues exceeding projected expenses, Hartman said there would be funds left over for capital improvement projects without affecting customer’s current rates.

Todd Miller, a utility service board member, shared a similar sentiment at Tuesday’s Utility Service Board meeting.

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