Although not mandated by statute, the Board of Commissioners of Lakehaven Utility District has charged management with the preparation of an annual budget document showing the planned expenditures for the coming year, as well as the sources of revenue to pay for them. A budget provides a framework for financial planning, control and evaluation of the District's performance. It is the detailed roadmap that shows how the elected body and their agents plan to use the limited financial resources at their disposal to fulfill the District's mission during the upcoming year. The 2001-2002 Biennial Budget extends this roadmap a step further, and shows the anticipated results of operations for two complete fiscal years.

At the November 2, 2000 Board meeting, the Lakehaven Utility District Board of Commissioners approved a $31.0 million expenditure budget. This is a 7.4 percent decrease from last year's budget of $33.5 million. Most of that decrease comes as a result of an 18.7% cut in the planned level of capital expenditures. Many of the large, expensive projects such as the OASIS project and various water main relocations have been deferred until 2002 and later. Operations and Maintenance spending is expected to increase by $483,000 next year which is a 3.5% increase.

2001 we are anticipating $20.6 million in revenue. Existing water and sewer rates account for about $19.4 million of Lakehaven's revenue. In the Fall of 1999, the Board of Commissioners approved an 8 percent rate increase as a result of the utility rate study performed that summer. This increase was calculated to cover our needs for the following three years. Unless the escalating cost of electricity, a large component of the cost of operating the water and sewer systems, drives revenue requirements beyond the level that current rates can absorb, ratepayers should not see any significant changes to their utility bills in 2001 or 2002. The same holds true for the dramatic increases in the cost of purchasing additional water from Tacoma. As always, the Board is committed to keeping rates as low as sound financial planning will allow.