The Fayetteville Public Works Commission expects to take in and spend $439.1 million in the 2024-25 fiscal year.
That is $11.8 million less than the almost $450.9 million that the city-owned water, sewer and electric utility expects to spend in the current fiscal year, according to PWC documents. The utility serves Fayetteville and some surrounding communities.
The PWC’s four-person board on Wednesday unanimously approved its 2024-25 budget following a presentation from CEO and General Manager Tim Bryant and a public hearing. No one signed up to speak at the hearing or submitted written comments about the budget.
In addition to approving the budget, the PWC commissioners approved the utility’s annually updated 10-year construction plan — which lists $2.67 billion in projects.
Budget details:
- $439.1 million for the upcoming fiscal year. This is down from the $464.9 million budgeted for the 2023-24 fiscal year, and is less than the $450.9 million projected to be the actual spending in the 2023-24 fiscal year.
- A key reason the PWC’s budget is smaller is that in 2019, the PWC negotiated a new contract that starting July 1, 2024, will reduce how much it pays Duke Energy for electricity, Jon Rynne, the chief operations officer for electrical systems told the board on May 8. Most of the power the PWC sells to its customers is purchased from Duke.
- The electric fund portion of the budget is $267.4 million.
- The drinking water and wastewater portion is $171.8 million.
10-year construction plan
The commissioners unanimously approved the PWC’s 10-year Capital Improvement Program, a document that outlines the utility’s construction and infrastructure plans from 2025 through 2034. And it recommended that the Fayetteville City Council accept a $10.9 million bid to extend sewer service to the Cliffdale Forest neighborhood in western Fayetteville.
The 207-page document outlines $2.67 billion in projects. Approval of this plan does not commit the PWC to spend this money on the projects, said Chief Financial Officer Rhonda Haskins. The PWC prepares because lenders want to see this kind of plan when considering the PWC for low-interest loans for water and sewer infrastructure construction, she said.
Some of the items in the 10-year plan:
- $89.7 million for water meters, electric meters and electric metering equipment.
- $77.3 million for maintenance on the gas turbines and transformers and other work at the Butler Warner electrical generation plant, plus construction of seven solar farms.
- Numerous other water, sewer and electrical service projects, plus administration and customer service items.
Cliffdale Forest sewer service
The commissioners approved a bid of nearly $10.9 million from contractor T.A. Loving Co. of Goldsboro to extend sewer service into the Cliffdale Forest neighborhood. Cliffdale Forest was part of the “Big Bang” annexation of 2005 that added much of western western Cumberland County to the city.
The bid now moves to the city council for final approval.
Senior reporter Paul Woolverton can be reached at 910-261-4710 and pwoolverton@cityviewnc.com.
This story was made possible by contributions to CityView News Fund, a 501c3 charitable organization committed to an informed democracy.
