While the Jefferson County Public Utility District is expecting to bring in a significant sum of revenue in the long-term from its ongoing broadband internet project in east Jefferson County, commissioners raised concerns over managing debt in the short term during their Oct. 3 budget hearing.

The PUD released expected revenues and expenses for its 2023 budget, with staff expecting the utility authority to bring in $46.1 million in electrical utility operating revenues and $4.9 million in electrical utility operating revenues.

As for operating costs, the PUD is anticipating $46.3 million for electrical utility operating expenses and $4.6 million for water utility operating expenses.

“This is our game plan for what we think is going to happen in 2023,” PUD General Manager Kevin Streett said during the budget hearing.

The utility district is expecting to hire 11 new staff members in 2023.

The positions include a broadband administrator, two broadband technicians, one supervisory control and data acquisition/substation apprentice, a network engineer, three linemen, a summer intern, one water meter reader, and a custodian.

Additionally, $800,000 of the PUD’s expected costs for 2023 will come from the organization’s role in the Sims Gateway and Boatyard Expansion Project, where the utility will remove the Normandy poplar trees lining the Boat Haven Marina side of the roadway.

The PUD is looking to hire a variety of professionals to aid its two major projects at the moment, a smart-meter installation project and the development of broadband internet services for the majority of residents living in east Jefferson County.

While the utility authority has made a number of advancements in its two main projects, PUD Commissioner Dan Toepper noted the debt on the smart-meter and broadband undertakings.

“We’ve already borrowed $5.5 million on the electric side; we borrowed $3 million or $4 million on the water side; we borrowed $2 million on the broadband side. That’s all in very recent memory, so we’re already somewhat starting to carry and expand our debt load,” Toepper said. “And we’ve increased rates, so I’m concerned about what kind of margins if we start borrowing even more money, even at no interest.”

“As we move forward, what kind of limit is that going to put on us with our rural utilities service loan without changing our revenue structure?” Toepper asked.

“Dan, you hit the crutch of our meeting in December,” Streett responded.

“It will be a very good discussion, Dan, and it’s one that we’ve probably put off a couple years too long,” Streett said. “With all the issues we’re facing today, supply chain issues with the cost of materials, with the cost of labor, all these issues. It is bringing this to the forefront and the responsible thing is for us to discuss them and come up with a plan for the PUD.”

In December, the PUD commissioners are set to meet again and discuss the budget before voting on the spending plan.