Operating and capital budgets, and six-year plan for capital projects
LOTT prepares a two-part budget that includes an Operating Budget and a Capital Budget. The Operating Budget contains all the costs necessary to operate LOTT facilities and provide related services. The Capital Budget includes costs to build new facilities and upgrade, replace, or rehabilitate existing facilities. Capital costs are based on LOTT’s Capital Improvements Plan (CIP), which lists the projects and programs anticipated within the next six years, and over the longer term.
LOTT's Budget and Capital Improvements Plan for 2019-2020 is about 75% capital costs and 25% operating costs. The budget is capital intensive due to a number of large-scale projects planned to sustain the Budd Inlet Treatment Plant, LOTT’s main treatment facility. Key projects include Biological Process Improvements, Ultraviolet Disinfection Upgrades, and Digester Refurbishment.
The 2017-2018 Budget and Capital Improvements Plan was approved by the LOTT Board of Directors at their November 2016 meeting. This was the first time LOTT developed a biennial budget. The LOTT Board approved the shift to a biennial format in 2016.
The Operating Budget includes $24.7 million for operations and $18.0 million for debt service. LOTT’s Capital Improvement Plan (CIP) identifies $98.3 million in projects anticipated through 2022. The 2017-2018 Capital Budget is about 41% of that total, at $40.6 million.