ASPA Budget increases for FY 2014, with fewer employees
American Samoa Power Authority’s budget for fiscal year 2014 is more than $133 million — an increase from the current fiscal year — while the workforce for the new fiscal year is less than FY 2013, according to ASPA’s budget details, which also reveal the authority has allocated some $39 million for the purchase of generator fuel.
In his budget summary letter, Gov. Lolo Matalasi Moliga informed lawmakers that among the contributing factors to the 8% reduction of the overall FY 2014 budget compared to FY 2013, are the federal sequestration, the winding down of federal assistance and a “change in ASPA’s business model” — referring to the termination of its fuel supplier function.
According to the document, ASPA’s FY 2014 budget totals $133.74 million with 460 employees, compared to the “approved” budget of $115.45 million in FY 2013 with 483 workers and $118.35 million in “actual expenditures” in FY 2012 with a workforce of 472.
(Samoa News should point out that not all of the “positions” or workforce jobs listed in the budget are currently filled.)
ASPA has set this division's budget at $86.52 million with a workforce of 322, compared to $58.57 million in FY 2013 with 350 people, according to the budget document.
The largest budget allocation of $44.83 million is for “materials & supplies” followed by contractual services at $29.77 million; personnel costs at $6.69 million and the rest for travel, ‘all others’ and equipment budget categories.
Funding sources include $53.85 million (a 13% increase from FY 2013) in “electric rates & other revenue; $31.42 million (an increase of 241% from FY 2013) in “federal operating grants from Interior Department/OMIP, FEMA & other funding sources” and $1 million (a 233% hike from FY 2013) in “other income”.
Also noted in the Electric Division’s budget is an allocation of $241,500 as subsidy to fund operations for Water, Wastewater & Solid waste divisions. In FY 2013, the total subsidy for these divisions was $1.46 million.
For materials & supplies budget item totaling $44.83 million, the budget document says, $39.41 million is allocated to “fuel for generators” and the rest of the money covers the usual supplies such as spare parts for generators, materials for power line repairs, and cleaning materials and supplies.
Under the “Contractual Service” budget item, the largest amount of $29.01 million is grant funding for “FEMA funded projects” followed by $132,500 to cover expenses for a turbocharge trainer; National Pollutant Discharge Elimination System (NPDES) permit — which is required under the federal Clean Water Act — to be carried out by New Zealand based Envirolab Geotest Ltd.; and cylinder heads repair services, etc.
ASPA has also allocated $15,000 for “road restoration” and this money is to fix roads cut by ASPA crew for underground repairs.
Of the total budget of $17.37 million for this division, $8.54 million (a hike of 12% from FY 2013) in revenue is to come from “water rates”, $8.67 million (a 145% increase from FY 2013) in federal grants from the U.S. Environmental Protection Agency and DOI Capital Improvement Project while $200,000 from other income (an increase of 11% from FY 2013).
In expenses, the largest expenditure of $7.64 million is for contractual service, with the single largest expense of $7.27 million to “grant funded water projects” for inspecting construction, test new pipelines & water tanks, water system design, etc.
Other big expense item categories are: Materials and Supplies totaling $3.44 million - with $2.07 million for grant funded projects; and $2.70 million in “All other costs” which includes $2.13 million to cover electricity costs to run water pumps, treatment plants and offices.
Wastewater’s budget stands at $20.06 million with 49 workers compared to FY 2013’s budget of $7.69 million with 29 employees, which is the also the same number of workers in FY 2012 when actual expenditures were $4.16 million.
Revenue sources for the division include $2.54 million (up 6% from FY 2013) in wastewater rates; $92,500 (up 42% from FY 2013) in DOI/O&M program grants; $414,000 (a decrease of 57% from FY 2013 for federal grants DOI-CIP ); $16.89 million (increase of 327% from FY 2013) in federal grants from EPA/CIP and $30,000 under miscellaneous revenue, such as new connections.
The division’s largest expense is $16.50 million in contractual services with $16.09 million for contract work for all CIP grant funded program projects. Other expenditures include $342,500 for electricity for sewer pumps charged to the Electric Division budget. The budget also shows money expended for repairs to failed pump motors, pipe inspection and technical training.
Of the total budget of $3.42 million for this division, the largest expenditure is $1.89 million under Contractual Services, followed by $619,500 in personnel costs and the rest covers materials and supplies, equipment and all others.
(FY 2014 budget with 21 workers is lower than the total $4.74 million approved in FY 2013 with 45 employees.)
The funding source includes $2.63 million (7% increase from FY 2013) in solidwaste rates; $400,000 (100% increase from FY 2013) under “miscellaneous revenue”; and $329,000 (84% decrease from FY 2013) in DOI contribution for recycling project & equipment.
The largest expense for the division is $1.84 million under “contractors” for solidwaste collections, which was “zero” budgeted in FY 2013.
(Samoa News points out this would correspond with ASPA once again out sourcing its garbage collection to a local company, instead of handling it in-house, as was the case in previous years, when ASPA was headed by Andra Samoa.)
Other expenses in FY 2014 include $155,000 for “bins & container supplies”; $78,000 for cinder loads to cover landfill & trash bin replacements and containers; $62,270 for recycle rebate project; and $31,780 for landfill land site lease.
This division had an approved budget of $34.41 million in FY 2013, but for the new fiscal year, the budget is only $6.35 million as ASPA transitions out of the fuel supply business. In FY 2013, there were four employees and the new fiscal year, shows three.
The only revenue source for the division is $6.64 million from “fuel sales”, while the largest expenditure of $5.92 million is under “Materials & Supplies”, which includes $4.08 for CFV marine diesel fuel and $1.02 million for gasoline.