THE Commonwealth Utilities Corp. expects to collect less during fiscal year 2003 due to the effects of the economic slump on the water and power consumption of its customers.
Acting CUC Executive Director Bernard Villagomez said the agency will parallel its operational expenses with the projected lower collections so they would also reduce their spending levels next fiscal year.
During FY 2001, CUC reported a projected revenue of $58 million. This was in addition to collections from the government estimated at $8.32 million and an additional collection of $1.2 million.
But Villagomez did not cite projected figures for FY 2003, saying their collections fluctuate every month.
“The board adopted our fiscal year 2003 budget which assumes a reduction of collections and reduced spending levels,” Villagomez said during the CUC board’s regular meeting on Saturday.
The board adopted a budget of $49 million for FY 2003—down by 5 percent compared to FY 2002 and by 27 percent compared to FY 2001.
But despite its reduced budget, CUC will still carry out personnel-growth programs, Villagomez said.
He added that they are preparing data that will assist the board in “making tough financial choices in the future” such as rate adjustments for certain operations.
CUC division managers from Saipan, Tinian and Rota were also present at the meeting to discuss their accomplishments and areas of concerns.
Major wastewater-related projects on Saipan are supposed to be constructed starting this year but CUC is still short of funds to fully finance them.
These include the construction of the collection pipeline at the Kagman wastewater plant and collection system. Ten million dollars was appropriated for the design and part of the pipeline as in 2001. But an additional $8 million is now needed to begin the construction.
