Budget & Capital Improvements Plan

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.

Review the 2021-2022 Proposed Budget
The 2021-2022 Budget and Capital Improvements Plan summarizes the proposed Operating Budget, Capital Budget, and Capital Improvements Plan (CIP). 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.

LOTT’s proposed budget is about 74% capital costs and 26% operating costs. The budget is capital intensive due to a number of large-scale projects planned for 2021-2022 to sustain the Budd Inlet Treatment Plant, LOTT’s main treatment facility. Key projects include Biological Process Improvements and Digester System Improvements. The CIP includes over $150 million in necessary upgrades to the wastewater treatment and conveyance facilities over the next six years.

As part of the budgeting process, the LOTT Board of Directors evaluated several rate scenarios intended to ease economic impacts of the Covid-19 pandemic on ratepayers. After careful consideration, the Board decided it was necessary to maintain an annual rate adjustment. The Board reviewed the draft budget and set preliminary rates for 2021 and 2022 at their August meeting. Both the monthly charge and the connection fee include a 3% annual inflationary adjustment to account for anticipated increases in the cost of construction. For 2021, the monthly charge will be $42.23, increasing $1.23 from the 2020 rate. For 2022, the monthly charge is $43.49. The fee for new connections in 2021 will be $6,417.61, and in 2022, will be $6610.13.

A virtual Public Hearing will be held on Wednesday, October 14, 2020, regarding the proposed Budget and Capital Improvements Plan. The Hearing will begin at 6:30 p.m. with a brief presentation, followed by public testimony. The public can participate in the hearing via Zoom; log-in information will be available after October 9 on the meeting agenda posted to LOTT’s Board Meeting webpage.

Public comment is invited at the Public Hearing on October 14, and at all LOTT Board meetings, held every second Wednesday of the month. You can send us an email with questions or comments, or call (360) 528-5772.

Proposed 2021-2022 Budget and Capital Improvements Plan (PDF)

2019-2020 Budget 
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.

2019-2020 Budget and Capital Improvements Plan (PDF)