PORT TOWNSEND — The Jefferson County Public Utility District finished 2022 with positive revenues but is spending a lot of money as it builds out its new broadband network, commissioners were told.
In a special meeting Tuesday, Finance Director Mike Bailey told the board of commissioners the utility brought in more than $8 million in combined revenues, but most of that money was spent in 2022.
“Over the last few years, we’ve been using the cash reserves plus the margins,” Bailey said. “Just because we’ve had a lot of projects, a lot of money going out that, over the next couple years, will have opportunities to come back to the utility through grant reimbursements, through loan proceeds, things like that.”
According to Bailey, most of the PUD’s revenues come from its electrical services, which in 2022 brought in an estimated $42.7 million and cost the utility about $37.3 million.
Water service brought in $3.7 million and cost $3.4 million.
Non-operating revenues from construction aid, taxes, timber sales and interest income brought in just over $3 million.
The utility’s 2023 budget — just over $52 million and approved in October — was one of the largest in the utility’s history, Bailey said, and reflected the investments being put into the construction of the broadband network.
The PUD’s 2023 capital budget includes $15 million for the broadband network, most of which is covered by various grants and loans but will require the utility to pay those costs upfront before being reimbursed.
But while construction on the network is continuing, PUD General Manager Kevin Streett told commissioners Tuesday the project was behind schedule.
“We are moving slower than anyone wants, but with today’s economy, the amount of work going on, I feel lucky we are in the place we are,” Streett said.
“We are struggling a little bit. We are two months behind, but it seems like we’re just about to turn the corner where we’re going to make some big progress,” he added.
Commissioners decided not to immediately hire an outside consultant to review the utility’s broadband operations, reasoning the project was not yet at a point where a meaningful analysis could be completed.
Staff had recommended the utility spend $20,000 to bring on EES Consulting, Inc. to review the broadband program, but the board decided instead to include regular updates from the PUD’s current consultant, Doug Dawson of CCG Consulting.
District 3 Commissioner Dan Toepper was in favor of moving ahead with hiring EES, but he wasn’t able to convince his fellow board members.
“Broadband is kind of front and center at the moment,” Toepper said. “We’ve borrowed some money already. More than likely, we’re going to borrow more money.
“We don’t know what our revenues are going to look like. I do think we need that third set of eyes on this particular item right now,” he added.
Commissioners Kenneth Collins and Jeff Randall both said they felt the broadband program wasn’t complete enough and that bringing on a consultant would require additional time from PUD staff, which is already understaffed in its broadband division.
“I’d like to see us be operational, see the actual take rate,” Collins said. “I don’t think the timing is right to do a review right now because we don’t have the most critical pieces of information.”
A special meeting on March 14 will include a review of broadband planning and an update from Dawson.
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Reporter Peter Segall can be reached at peter.segall@peninsuladailynews.com.
