NPU Board Unanimously Approves FY 2021 Budget
At its March meeting, the Norwich Public Utilities (NPU) Board of Commissioners unanimously approved the FY 2021 budget for NPU. This draft budget was developed prior to the coronavirus pandemic, which will have a significant impact on NPU revenues. While it is too soon to make any projections as to the extent of these changes, we are already making contingency plans to reduce expenses while not compromising the health and safety of our customers and employees. As the pandemic and its impact on the national and regional economy continue to evolve, NPU will provide regular updates on our revenues and expenses until the situation stabilizes.
NPU’s FY2021 budget proposes no rate increases for natural gas, electric or water. This is the second consecutive year that NPU has proposed a budget that does not increase these rates.
The budget proposes a 6% increase for wastewater rates, which would result in an increase of approximately $3.00 per month for a typical residential customer, less than a dime a day. This begins to prepare us financially for the planned sewer plant upgrade project.
Payment to the City’s General Fund:
NPU’s proposed FY20210 budget includes a payment to the City of Norwich of $9,169,722.
- This is the largest annual payment to the City in the history of NPU
- $764,000 per month sent from NPU to the City of Norwich
- $82.6 million sent by NPU to the City of Norwich over the past ten years
FY 2020 $100,981,650
FY 2021 $98,577,145
• Reduced revenues reflect rates that have not increased for natural gas, water and electric customers for the past two years.
FY 2020 $93,717,237
FY 2021 $95,964,227
These expenditures reflect operational costs necessary continue to meet the following priorities:
Continuing to implement the Board’s priority of support economic development in Norwich (NCDC, other investments = $600,000)
Proactive investment in aging infrastructure – all four utilities
Meeting or exceeding local, state and federal regulatory requirements
Exceeding customer expectations for customer service and reliability
Deploying technology for the continued benefit of NPU and the City
FY 2020 $7,264,413
FY 2021 $2,612,918
Proposed workforce of 148 which is 2% below the NPU headcount of 2016 and consistent with what we’ve had over the past several years.