Grant PUD looking to finish fiber project in five years
EPHRATA — The Grant County PUD will work to finish the county’s fiber buildout in five years. Utility district commissioners directed employees to add $12.6 million to the 2019 budget for the fiber project, with the intention to allocate enough money each year, estimated at $12.6 million, to finish the project.
The money budgeted for 2019 will be added to about $3.1 million allocated for the fiber project, but not spent, in 2018. The total allocation for fiber in 2018 was $7 million.
“I personally would like to see the twelve and a half million a year for the next five years, and get it done,” said commissioner Dale Walker. “And then we can adjust our debt and adjust our rates accordingly, to keep everything in line.”
“I concur with Dale,” said commissioner Terry Brewer.
“I do too,” said commissioner Tom Flint. “We need to get it done. I’m ready to move on to some other stuff.” Commissioners Bob Bernd and Larry Schaapman didn’t voice an opinion.
Chief financial officer Jeff Bishop laid out three different options for the fiber program, and how each affected the 2019 budget. The first option added $7 million for the fiber buildout in 2019, the second projected a nine-year project, and the third was the five-year project. The nine-year buildout was projected at $7 million per year, and the five-year project was projected at the $12.6 million per year.
In each case, the projection was based on an overall two-percent rate increase in 2019, a one-percent overall rate increase in 2020 and one-tenth of one percent in 2021, and one-tenth of one percent overall annually through 2028. The projection also assumed total debt for the utility would start at 60 percent of total assets, and would drop to 56 percent by 2023.
The projections showed, as would be expected, the PUD ended up with less cash in both the nine-year and five-year buildout cases. It also showed, in both cases, the PUD missed its budget target for the amount of money left to pay back debt.
In answer to a question from Schaapman, Bishop said the budget projection assumed about $25 million for the project from the district’s cash reserve, with the rest paid by issuing construction bonds.
Cheryl Schweizer can be reached via email at education@columbiabasinherald.com.
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