The proposed Winchester Municipal Utilities budget for the 2017-2018 fiscal year shows both revenues and expenses up slightly from where they were one year prior.

According to the budget documents, the utility is anticipating $17.8 million in revenues, up 1.43 percent from the $17.6 million it brought in during the 2016-2017 fiscal year. 

That revenue will be used to cover a projected $15.8 million in expenditures, which have increased about 2.4 percent from $15.4 million in the last budget cycle.

The additional $2 million WMU is expecting in revenues, along with about $316,000 in non-operating income, will be put toward debt service totaling $1.6 million, leaving WMU with a projected budget surplus of about $718,000 at the end of the year, according to the budget.

While most operating expenses in WMU’s budget are either remaining stable or increasing, a notable drop can be seen in field operations costs, which is allocated for large vehicles costing more than $60,000, according to director of accounting and finance Jennifer Sparks.

“We decreased that line item by $135,000 for this budget year based upon actual equipment needs.

In addition to the operations budget, WMU will maintain a Kentucky Infrastructure Authority (KIA) loan reserve fund and a bond reserve fund.

Those funds are used to pay the final bond and KIA loans, and bond ordinances. Sparks said bond ordinances require WMU to maintain two months of operating and maintenance expenses in liquid funds as well.

Finally, the surplus revenue that doesn’t cover expenses will be put toward the infrastructure WMU supports, she said.

“All excess revenue after bond ordinances have been met is being accumulated to use for the Water System Improvements which includes the construction of the new WTP and associated structures,” Sparks said. 

WMU General Manager Mike Flynn said the budget is still in its tentative form, and the WMU commissioners will vote on whether or not to adopt it at the board’s July 6 meeting.