The Sacramento Municipal Utility District’s Board of Directors last night approved a $1.51 billion budget for 2009.
Jim Tracy is SMUD’s chief-financial-officer. He says they had to take about $27 million out of a reserve account to balance the budget.
“And so we will, in the first quarter, be talking to the board about the possibility of raising that additional amount through rates. But if we did do that it would be very late in the year probably.”
Tracy says it’s too early to estimate how much that possible rate hike would be. He says SMUD has been hit hard from a drop in developer fees caused by the housing crisis. The new spending plan anticipates a $44 million decline in revenues because of a sharp drop in customer growth.
SMUD has implemented only three rate hikes in the past 18-years.